Loch Capital To Lay Off Most Employees In Raid's Wake

Dec 8 2010 | 3:37pm ET

It may not be a target of the Justice Department's massive insider-trading investigation, but that doesn't appear to matter for Loch Capital Management.

The Boston-based hedge fund, one of three raided by the Federal Bureau of Investigation two weeks ago, will lay off most of its staff at the end of the year, Hedge Fund Alert reports. A spokesman for Loch told HFA that "no decision has been made to close" the firm, but declined to comment on the report of layoffs.

Loch currently employs 14 people. According to HFA, most of them will be out of a job after Dec. 31.

Even before the raid last month, it had been a difficult year for Loch. The firm, headed by Timothy and Todd McSweeney, suffered significant redemption requests following the arrest and guilty plea of the brothers' longtime friend, Steven Fortuna, in the Galleon Group insider-trading case. Fortuna was the head of Boston hedge fund S2 Capital Management and is a key witness in the Galleon case.

The firm's assets under management have slipped to $200 million from a peak of $2 billion.

News of the layoffs comes just days after Loch became the third of the three hedge funds raided on Nov. 22 to say that it had been assured by the government that it was not a target of the probe. The firm also said it had stopped using expert networks, which are among the focuses of the insider-trading investigation.


In Depth

Kettera Q&A: The Advantages of Alternative Investment Platforms

Oct 28 2016 | 5:52pm ET

The past several years have seen a distinct push towards easier and cheaper access...

Lifestyle

Midtown's Plaza District Fades As Manhattan Office Landscape Shifts

Nov 22 2016 | 6:32pm ET

Lower leasing costs, more efficient office space and the hope of projecting an image...

Guest Contributor

Nowhere to Hide: Why the Future of Asset Management Depends on Innovation

Nov 15 2016 | 6:55pm ET

Information technology has reshaped the asset management industry’s periphery,...

 

From the current issue of

Chicago-based independent futures brokerage and clearing firm R.J. O’Brien & Associates (RJO) has hired industry veteran Daniel Staniford as Executive Director, responsible for the firm’s institutional business development in New York and London.

AVAILABLE NOW at BARNES & NOBLE

NEWSTAND LOCATOR