Diamondback Capital to Liquidate as Investors Make Large Withdrawals
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Hedge fund Diamondback Capital Management is slated to shutter its doors as investors have largely liquidated their stake in the firm.
According to a letter from co-founders Richard Schimel and Lawrence Sapanski, Diamondback received requests from investors to withdraw $520 million from the fund, amounting to about 26 percent of total assets. A majority of the equity is expected to be returned next month.
Diamondback managed nearly $6 billion in assets when its offices were raided by the FBI in November 2010. The firm has since agreed to pay $9 million to settle an investigation into insider trading.
Bloomberg-compiled data has Diamondback returning about 6 percent this year and 9.1 percent annually since inception in 2005. Overall, hedge funds are up 1.8 percent in 2012 through November.
According to a letter from co-founders Richard Schimel and Lawrence Sapanski, Diamondback received requests from investors to withdraw $520 million from the fund, amounting to about 26 percent of total assets. A majority of the equity is expected to be returned next month.
Diamondback managed nearly $6 billion in assets when its offices were raided by the FBI in November 2010. The firm has since agreed to pay $9 million to settle an investigation into insider trading.
Bloomberg-compiled data has Diamondback returning about 6 percent this year and 9.1 percent annually since inception in 2005. Overall, hedge funds are up 1.8 percent in 2012 through November.
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