Hedge Funds Politics & Regulation

Diamondback: We are not a target

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One of the hedge funds raided by the FBI last week says the investigation is focused on a single employee and a former employee who reported to him.

Diamondback Capital Management informed clients in a letter today that the firm is not a target of the government’s insider trading investigation. "Diamondback is not alleged to have engaged in any misconduct or wrongdoing," the letter said. The hedge fund was one of three firms raided last week by the Federal Bureau of Investigation, but Diamondback said that the search pertains to one portfolio manager who has since been put on leave. “The warrant appears to be focused on one employee (a portfolio manager), as well as on a former employee who reported to that employee,” the letter