Monday, 20 October 2014
Last updated 3 min ago
Oct 4 2011 | 3:13am ET
Unlike the other hedge funds raided by federal agents late last year, Diamondback Capital Management survived the bad press and association with an insider-trading investigation. But almost a year after the raid, investors are still slinking away from the firm.
Diamondback and three other hedge funds—all of which have since closed—were raided by the Federal Bureau of Investigation in November. Diamondback told clients that the authorities assured it that it was not the target of the probe, and neither the firm nor any of its current employees were charged with wrongdoing. But the Stamford, Conn.-based hedge fund and a former trader, who pleaded guilty to insider-trading in the Galleon Group case, did settle Securities and Exchange Commission charges in August.
The firm was hit with $400 million in withdrawal requests at its most recent redemption date, The New York Times reports. That brings its year-to-date redemptions to almost $2 billion, a figure that could grow, given Diamondback's recent performance.
Diamondback was, like many hedge funds, battered in August. Its flagship slipped 7%, erasing its year-to-date gains and leaving it down 5% on the year. Some of those losses came after the most recent redemption date, meaning investors spooked more by the losses than the raid could head for the door at its next redemption date.
Diamondback still manages about $4 billion, thanks in part to some fundraising in August.
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 McKitish of Peddie School's 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…
Sep 30 2014 | 9:29am ET
The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…
Most traders agree that proper risk management is the key to successful trading. However, many traders depend on the deeply flawed measure of standard deviation as a benchmark of risk. Here we put it ...