|Last year, Loch Capital Management LLC closed down its hedge funds after the FBI raided it in its investigation of alleged insider trading and the misuse of “professional networks.” Since then, Loch Capital has laid off its employees and given back investors their assets, according to an article from Bloomberg. |
Loch Capital Management was one of a series of four hedge funds investigated by the FBI at the time. The other three include Level Global Investors LP, Barai Capital Management LP, and Diamondback Capital Management LLC. Despite the lack of charges against their founders, Level Global and Barai Capital have also closed their funds. While Diamondback Capital is still running its funds, its investors withdrew a total of $1.32 billion after it placed one of its technology portfolio managers on leave subsequent to the investigation.