Photo: A Little Hope
Today, news broke that raided hedge fund Loch Capital has shuttered in the wake of the FBI’s sprawling insider trading probe.Two other raided hedge funds, David Ganek’s Level Global and Sam Barai’s Barai Capital, were forced to liquidate earlier this year.
But Diamondback, run by SAC alum Richard Schimel and Larry Sapanski, at least appears to have weathered the storm better than its hedge fund brethren.
Yes, there have been redemption requests, but rumours of a firm fatality at the hands of the FBI’s investigation are absent from the media landscape.
What we have heard, however, is that “Diamondback is taking calls.”
That is, employees of the hedge fund who used to say “thanks, but no thanks — I’m not interested” when headhunters came-a-calling, aren’t hanging up the phone now, a source tells us.
“They’re staying on the phone. They’re listening now… a lot.”
So even though Diamondback investors might be feeling nonplussed, it looks like its employees are feeling a little more anxious about their future… At least enough to stay on the line.