Stamford-based Diamondback Capital Management — one of several hedge funds raided by the FBI two years ago as the result of an investigation into insider trading — is reportedly closing following requests from investors to withdraw about $520 million, or about 26% of its assets.
The firm, with offices in the Landmark Square building, plans to return the majority of clients' cash next month, according to a report in the Wall Street Journal.
"Rather than continue to manage investor capital while undertaking to restructure the firm to manage this reduced level of assets, we have decided that the most prudent course is to wind down and terminate the funds and return investor capital," the hedge fund's founders Richard Schimel and Larry Sapanski said in a letter to investors, according to the report.
Meanwhile former Diamondback portfolio manager Todd Newman is on trial in Manhattan on insider trading charges.
For more check out the Wall Street Journal report.