In announcing his decision this week to close down Pequot Capital, once the world’s largest hedge fund, founder Art Samberg wrote that the news “might come as a surprise.”
“Surprise,” however, may be overblown. Pequot struggled last year, losing nearly half of its assets to close the year with $3.57 billion. In the past few years, the firm’s performance has been disappointing. Meanwhile, the Securities and Exchange Commission and the U.S. Attorney’s office reopened their investigations of possible insider trading at the firm that allegedly took place in 2001.
The decision to shut down, which Samberg announced in a May 27 letter to investors, was “extremely difficult,” and