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Level Global Hedge Fund Says It Isn’t Probe Target

Level Global Investors LP, the hedge fund run by David Ganek whose offices were raided by the Federal Bureau of Investigation on Nov. 22, told clients today that the government said it wasn’t a target of its insider-trading probe.

The firm, with offices in New York and Greenwich, Connecticut, said in the letter it received a search warrant and subpoena last week and met with the U.S. Attorney’s Office on Nov. 23. Investigators confirmed today it wasn’t a target of the investigation, according to a letter sent to investors.

“Nor, in fact, has the firm been alleged to have engaged in any misconduct or wrongdoing,” Level Global said in the letter, a copy of which was obtained by Bloomberg News.

Diamondback Capital Management LLC, a hedge fund whose offices were also raided on Nov. 22, told clients today that the government was examining one of its portfolio managers who was put on leave. The Stamford, Connecticut-based firm said it received a grand jury subpoena and was told by the government that it isn’t the target of the probe.

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