Tuesday, 23 September 2014
Last updated 2 hours ago
Feb 16 2011 | 3:57am ET
Things aren’t as rosy at Diamondback Capital Management as the hedge fund indicated last week.
Investors have filed redemption notices totaling more than $1 billion with the firm, one of four raided in November by the Federal Bureau of Investigation as part of the Justice Department’s massive insider-trading probe. Diamondback has not been accused of any wrongdoing.
The withdrawal requests, first reported by The New York Times, are about twice the amount the firm reported to investors last week, indicating that its efforts to reassure did not go as well as Greenwich, Conn.-based Diamondback had hoped. Later last week, the firm acknowledged that redemption notices had crested $700 million; the final total is likely to be higher, as the deadline for notices was yesterday at 5 p.m.
Diamondback, which manages about $5.5 billion, had told investors last week that “several large investors” would stick with the firm. That includes that Blackstone Group, the hedge fund’s largest investor, which does not plan to substantially alter its investment with Diamondback.
The hedge fund also warned investors to think long and hard about their decision: Unlike most of its peers, Diamondback said it will not allow investors to revoke their redemption requests. It is unclear if the ballooning level of withdrawal demands will lead it to change that stance.
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitich, CIO of Petty Endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Aug 25 2014 | 11:21am ET
As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…
Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.