Diamondback Capital Management, among the hedge funds that was raided by the FBI about two years ago as part of the U.S. investigation of insider trading on Wall Street, is liquidating after clients pulled money.
Bloomberg reports that the Stamford, Connecticut-based fund received requests from investors to withdraw about $520 million, or 26 percent of its assets, co-founders Richard Schimel and Lawrence Sapanski, said today in a client letter. They said they plan to return the majority of the money next month.
'We especially appreciate your patience and support during the last two difficult years during which we reached closure of the government’s investigation', they said in the letter.
Diamondback has seen its assets shrink to $1.5bn from $5.8bn in November 2010, when its offices were searched by the Federal Bureau of Investigation.
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