Wednesday, 6 May 2015
Last updated 4 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.
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…