Pequot Capital Management, a $3 billion hedge fund out of Connecticut headed by famous investor Arthur Samberg, is going to be liquidated thanks to unwanted publicity brought about by an ongoing investigation into insider trading of Microsoft shares.
Samberg told investors that the hedge fund had become inundated by negative publicity surrounding the SEC‘s investigation into the matter.
“Those agencies closed their investigations in 2006 without bringing any charges, but Pequot nonetheless suffered from adverse publicity,” Samberg stated. “Public disclosures about the continuing investigation have cast a cloud over the firm.”
Samberg plans to liquidate Pequot Capital’s main fund of $2 billion, with cash being paid to its investors by the end of June. Both the Pequot Capital Matawin fund and Special Opportunities fund, which are said to be valued at about $1 billion, are going to be spun off as separate entities.
Thus far, Pequot has managed to deliver a 1.9 percent return this year, compared to an overall decline in the markets themselves.
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- Pequot closes due to investigation (dailyfinance.com)
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