Diamondback, Level Global among pension darlings
By Anastasia Donde, Katrina Dean Allen
Tue Nov 23, 2010
The firms raided yesterday by the FBI manage money for some of the country’s largest pension plans, in the popular direct investing gambit. So far, none of the funds has been put on watch.
Diamondback Capital Management and Level Global Investors,
two of the SAC Capital Advisors-related hedge funds raided
yesterday by the Federal Bureau of Investigation, are among the
funds heavily favored by public pension plans-including large
pensions for New York State retirees and Texas teachers-that
have chosen to invest directly into hedge funds. Diamondback,
Level Global and Loch Capital Management were each raided
yesterday by the FBI as part of a large government probe of
insider trading activities. The FBI said in a statement that it
had obtained court-authorized federal search warrants as part
of a continuing criminal investigation. Today, SAC reportedly
received a government request for documents. Several of these
pension funds were steered to Diamondback by consultants ,
specifically Aksia, a firm in New York that advises pension
funds on their hedge fund investments, and Cliffwater, another
hedge fund consulting firm based in Marina-del-Rey, Calif."We
continue to monitor the situation...
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