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Barai Capital, the fourth hedge fund raided by the FBI in connection to its massive insider trading case, is closing, the WSJ reports.Also closing is STG Capital – a tech-focused hedge fund that worked with Primary Global Research, the expert network at the centre of the scandal.
Steven T. Glass, the founder of STG, told investors last week he was shuttering the fund, according to Reuters.
STG and Barai both “regularly employed Primary Global consultants to gather information on tech stocks,” Reuters said, but Glass said that the PGR connection had nothing to do with the shuttering.
“You are factually incorrect in much of that, sir,” he said. “As I informed our investors last week, assets were not at a critical mass to sustain the business.”
STG’s top stock holdings included STG Semiconductor, Qualcomm and Apple — all stocks that have been mentioned in the FBI’s investigation and federal complaints against alleged inside traders.
STG hasn’t been charged in the investigation, and neither have any of its employees.