Diamondback to Close Down as Investors Pull $520 Million
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Diamondback Capital Management LLC, among the hedge funds raided by the FBI two years ago in the U.S. investigation of insider trading on Wall Street, is liquidating after an exodus of clients.
The fund received requests from investors to withdraw about $520 million, or 26 percent of its assets, for the end of the year, co-founders Richard Schimel and Lawrence Sapanski said today in a client letter. The Stamford, Connecticut-based firm, which has 133 employees, plans to return most of clients’ cash next month.