Monday, 30 March 2015
Last updated 2 hours ago
Jan 25 2010 | 8:10am ET
One of Boston’s biggest hedge funds has been inundated with redemption requests after a close friend of its founders pleaded guilty in the Galleon Group insider-trading scandal.
Loch Capital Management, which one managed more than $2 billion, has been hit with withdrawal requests topping $200 million, Reuters reports. At least some of those redemptions are linked to the longtime friendship of founders Timothy and Todd McSweeney and Steven Fortuna. Fortuna, the co-founder of fellow Boston hedge fund S2 Capital Management, is a key government witness in the Galleon case.
According to prosecutors, Fortuna admitted sharing insider information with the manager of an unidentified Boston hedge fund. There is no indication that that fund is Loch Capital, but a court filing says that the manager and Fortuna were friends. Loch Capital is a technology fund; the Fortuna tip involved Dell Computer.
Neither of the McSweeneys nor Loch Capital have been accused of any wrongdoing.
Fortuna, by contrast, is said to have shared tips with Danielle Chiesi, a former executive at New Castle Partners. Chiesi, who has been charged alongside Galleon founder Raj Rajaratnam, has pleaded not guilty.
Mar 9 2015 | 6:35am ET
As more investors look to diversify, many are beginning to use retirement funds to invest in alternative assets such as private equity and real estate. Kelly Rodriques, CEO & President of PENSCO Trust Company, explains how companies can connect with those looking to use their retirement accounts in a different way. Read more…
Mar 20 2015 | 12:45pm ET
StreetWise Partners, a non-profit organization that works with low-income individuals to help them overcome employment barriers, raised over $275,000 at the 2015 Raising the Ante Charity Poker Tournament and Casino Event last Wednesday evening at Capitale. Here are some photos from the event. Read more…