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Stamford-based hedge fund Diamondback Capital, which was raided by the Feds back in 2010 as part of the government’s wide sweeping insider trading crackdown, is liquidating, Bloomberg’s Saijel Kishan and Stephanie Ruhle report.Diamondback’s co-founders Larry Sapanski and Richard Schimel, who are both alums of Steve Cohen’s SAC Capital Advisors, told investors in a letter that they have received redemption requests of $520 million of its $1.5 billion AUM, Bloomberg reports.
Most of the money will be returned next month, the report said.
Hedge funds Level Global, Loch Capital Management and Barai Capital Management were also raided back in November 2010. They have all closed.
Meanwhile, former Diamondback portfolio manager Todd Newman is on trial for allegedly trading on inside information in Dell and Nvidia. Level Global’s co-founder Anthony Chiasson is also on trial.
Meanwhile, Todd Newman, an ex-Diamondback Capital portfolio manager, and Anthony Chiasson, the co-founder of Level Global, are on trial. The co-defendants are accused of trading on inside information in Dell and Nvidia stocks.
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