Balyasny suspends use of expert networks
December 03, 2010
Britt Erica Tunick
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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