Balyasny suspends use of expert networks
By Britt Erica Tunick
Fri Dec 3, 2010
While under investigation, the firm has suspended its use of the research firms that have lately drawn intense government scrutiny.
As Balyasny Asset Management finds itself under the
governmental microscope, the firm has suspended its use of
third party research firms and is stepping up its internal
compliance efforts-and it's not alone.
In the wake of a widespread government probe into insider
trading activities among hedge funds, which recently included
Federal Bureau of Investigation raids at Diamondback Capital
Management, Level Global Investors and Loch Capital Management
along with subpoenas of firms including Balyasny, many hedge
funds have begun reevaluating their research relationships and
examining potential legal risks. "We just think it's prudent
right now, given everything that's going on, to put a pause on
our external relationships," said Barry Colvin, a vice chairman
at Balyasny. He notes that...
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