Level Global To Wind Down, Return Investor Cash

Feb 11 2011 | 12:12pm ET

Level Global Investors, one of four hedge funds raided by the FBI in November as part of a federal insider-trading probe, is closing up shop and returning cash to clients, according to a letter first obtained by Dealbreaker.

The $3.5 billion firm expects to sell off all its holdings by the end of March.

Level Global investors have until the end of February to put in redemption notices for March 31. Dealbreaker, citing “people familiar with the matter” says the fund has already received redemptions worth $750 million. Anticipating heavy redemptions, fund co-founder David Ganek wrote:

“So, while we may be able to continue to operate Level Global, without the appropriate scale and ability to invest with the same strategy, it would not be the business we promised to our investors.”

Level Global was founded in 2003 by Ganek and Anthony Chiasson, both SAC Capital Advisors alumni.

“Unfortunately the ongoing government investigation presents significant challenges to maintaining our collective focus,” Ganek said in the letter. The fund co-founder reiterated that the fund is not the target of the U.S. government investigation and is not alleged to have engaged in any misconduct.


In Depth

Q&A: Rotation Capital's Rothfleisch On SPAC 2.0

Aug 11 2017 | 7:43pm ET

Corporate actions have long been a staple of event-driven investors, but activity...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Star Mountain: Private Lending in the Lower Middle-Market

Aug 14 2017 | 4:45pm ET

Private credit has become one of the most popular alternative asset classes in recent...

 

From the current issue of