Loch Capital Says It's Not Target of U.S. Probe After FBI Raid Last Month

Loch Capital Management LLC, one of three hedge funds raided by the FBI last month, said that it received a subpoena and the firm’s management isn’t the target of a government probe.

The search appears to be a broader investigation by the U.S. of the financial-services industry and the use of “professional networks,” the Boston-based firm said in a Dec. 3 letter to clients.

The U.S. Attorney’s Office confirmed that Timothy McSweeney or Todd McSweeney aren’t the focus of the investigation, Loch Capital said. The twin brothers run the fund.

The firm said it has stopped using expert networks, which sell research and provide access to industry consultants.

To contact the reporter on this story: Saijel Kishan in New York at skishan@bloomberg.net

To contact the editor responsible for this story: Christian Baumgaertel at cbaumgaertel@bloomberg.net

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