A number of hedge funds have now been named in the FBI’s huge insider trading investigation, but we suspect that some firms connected to the scandal have managed to keep their involvement under wraps.
So this morning, when an industry source mentioned that a fund called “White Mountain” had also been hit, we wondered which White Mountain they were talking about.
There’s White Mountains Advisors, a financial services holding company in Guilford, Connecticut. And then there’s White Mountain Capital, a small New York based hedge fund.
UPDATE: A commenter points out that there is another firm to consider. He writes:
“What about White Mountain (NYSE:WTM), the large insurance company that is known as a sizable investor?”
Our source wouldn’t say anything more.
We assume it would be the hedge fund, because White Mountains Advisors sounds more like an insurance broker, but we called both.
At White Mountains Advisors, we got an answering machine. Later someone at the firm told us that it was corporate policy not to comment to the media.
And at White Mountain Capital, in New York, whoever answered the phone told us that he didn’t know who we were, so he wasn’t going to say anything.
Then we asked, well, have you been subpoenaed or not? If you haven’t, just say that and the story’s dead.
He told us he’d pass the request onto his counsel. We later emailed them and haven’t heard anything.We just heard back.
From White Mountain:
White Mountain Capital, LLC is a registered broker-dealer, not a hedge fund. I can also report that we have not received a subpoena in connection with the insider trading investigation. As a registered BD, we wouldn’t be able to keep any alleged involvement “under wraps” for long as we are required to promptly disclose such matters on our Form BD.
So the fund managers Diamondback, Loch, and Level Global have been raided, and the media has heard of at least 8 other firms that have been subpoenaed. And now we may or may not be able to add White Mountain to one of those lists.
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