FBI investigation spurs closures of Loch Capital, Level Global & Barai Capital

March 15th, 2011
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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.
For Detailed Investor Profiles on these Investors, click below:
Diamondback Capital Management
Level Global Investors*
Loch Capital Management LLC
Related People: Andrea Feinstein; Anthony Chiasson; Chad Loweth; David Ganek; Larry Sapanski; Rich Schimel; Tim McSweeney; Todd McSweeney
Related Entities: Loch Capital Fund II; Diamondback Capital; Diamondback Offshore Fund LP; Loch Capital Fund Offshore LTD; Loch Dundonald hedge fund.; SAC Capital Advisors*; Diamondback Partners LP; Level Global Inc; Level Global LP; Level Global Overseas Master Fund; Level Global, LLC; Level Management LP; Loch Capital Fund I LP
Related Article Tags: Multi-Strategy, Long Short, Equity, Debt and Global Macro Hedge Fund News; Hedge Fund Launches and Hedge Fund Closings


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