Saturday, 20 December 2014
Last updated 15 hours 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.
Dec 1 2014 | 10:21am ET
As 2014 winds down, Northern Trust Hedge Fund Services executives took some time to share their outlook on trends facing the industry in 2015. Read more…
Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.