Diamondback To Liquidate: Here Are Its Largest Holdings

Tyler Durden's picture


Once upon a time Diamondback was one of the most prestigious, most desired to work for hedge funds. That is no longer the case, because as Bloomberg reported moments ago, the Stamford, CT-based fund, which as recently as 2010 had nearly $6 billion in AUM, is closing down, due to concerns it could be the next SAC, and following a flurry of redemptions, has no choice but to liquidate. What equities will be dumped wholesale by the fund? Full list of top 30 holdings is presented below.

From Bloomberg:

Diamondback Capital Management LLC, among the hedge funds that was raided by the FBI about two years ago as part of the U.S. investigation of insider trading on Wall Street, is liquidating after clients pulled money.


The Stamford, Connecticut-based fund received requests from investors to withdraw about $520 million, or 26 percent of its assets, co-founders Richard Schimel and Lawrence Sapanski, said today in a client letter. They said they plan to return the majority of the money next month.


“We especially appreciate your patience and support during the last two difficult years during which we reached closure of the government’s investigation,” they said in the letter.


Diamondback has seen its assets shrink to $1.5 billion from $5.8 billion in November 2010, when its offices were searched by the Federal Bureau of Investigation. Three other hedge funds that were also raided at the time, including Level Global Investors LP, have all shuttered. Former Diamondback portfolio manager Todd Newman is on trial in Manhattan on charges that he was part of a “criminal club” of friends and co-workers who made trades based on illegal tips.


Diamondback returned about 6 percent this year through yesterday and an annualized 9.1 percent since its June 2005 inception, according to a person with knowledge with the returns who asked not to be named because the information is private.

Those curious what this fund, which appears to have been elbow deep into the hedge fund hotel high beta stocks, will shortly be liquidating, here are its Top 30 positions as of the latest 13F.

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Thu, 12/06/2012 - 10:16 | 3039002 Levadiakos
Levadiakos's picture

My 15 year old could have built that portfolio. 2 and 20 LOL

Thu, 12/06/2012 - 10:26 | 3039015 Tirpitz
Tirpitz's picture

At least no crumbling FCX nor AMD..., likely due to being 'part of a “criminal club” of friends and co-workers who made trades based on illegal tips.'

Thu, 12/06/2012 - 10:33 | 3039051 chubbar
chubbar's picture

The rumor on FCX is that the CEO is running a defunct oil company that FCX recently had funds diverted into under the guise of investment in order to prop that company up. Keep an eye out for lawsuits from shareholders over this.

Thu, 12/06/2012 - 13:02 | 3039566 Augustus
Augustus's picture

The MMR properties are worth a great deal, certainly far from defunct company.

Cash is certainly short as MMR spent too much on one well.

Reserves are there and, when developed, will put the frackers out of business.

Thu, 12/06/2012 - 10:21 | 3039017 GetZeeGold
GetZeeGold's picture



Totally counted on YHOO for the big comeback.....who knew?

Thu, 12/06/2012 - 10:23 | 3039025 Sancho Ponzi
Sancho Ponzi's picture

Some trader probably has the hots for Marissa Ann Mayer.

Thu, 12/06/2012 - 10:51 | 3039116 Excursionist
Excursionist's picture

Something not quite appealing about a 37 year-old woman who just squeezed out a cannon ball through her vag.

Thu, 12/06/2012 - 10:21 | 3039020 economics9698
economics9698's picture


Looks like the shit Kramer peddles to the muppets on Mad Money.


Thu, 12/06/2012 - 12:40 | 3039499 optimator
optimator's picture

Does your 15 year old have "connections" required to trade those at a profit?  If so, help you son start a hedge fund.

Thu, 12/06/2012 - 10:16 | 3039003 mrktwtch2
mrktwtch2's picture

what..no apple??..lol

Thu, 12/06/2012 - 10:16 | 3039004 SmoothCoolSmoke
SmoothCoolSmoke's picture

Obviously.....not enough AAPL.

Thu, 12/06/2012 - 11:15 | 3039224 Hobbleknee
Hobbleknee's picture

Needs more AOL.

Thu, 12/06/2012 - 10:20 | 3039016 imaginalis
imaginalis's picture

Why call them hedge funds. Insider trading funds would be more appropriate.

Thu, 12/06/2012 - 10:25 | 3039032 HelluvaEngineer
HelluvaEngineer's picture

I fail to see wtf they were hedging.

Thu, 12/06/2012 - 10:27 | 3039036 Tirpitz
Tirpitz's picture

their own incomes

Thu, 12/06/2012 - 14:04 | 3039729 redd_green
redd_green's picture

Helluva: that's the point.    The crap in the 13F is for the SEC.  The "hedging" is all the crooked stuff nobody sees.  And, they've all moved on to whatever new crooked sh*t they're doing

Thu, 12/06/2012 - 10:21 | 3039018 Seorse Gorog fr...
Thu, 12/06/2012 - 10:22 | 3039023 CVfriendship
CVfriendship's picture

Absolute favorite holding....S&P 500 TR. HA

Thu, 12/06/2012 - 11:54 | 3039361 Vegamma
Vegamma's picture

But it's worth giving up 2 and 20 to tell people at cocktail parties that you own Diamondback, not some silly index.

Thu, 12/06/2012 - 10:24 | 3039027 EscapeKey
EscapeKey's picture

No matter the size of the portfolio, someone is standing ready to absorb it.


Thu, 12/06/2012 - 10:30 | 3039043 rehypothecator
rehypothecator's picture

Anadarko Pete shows up twice, and would make the top ten if the holdings were added. 

Thu, 12/06/2012 - 10:32 | 3039045 AssFire
AssFire's picture

I read somewhere that "on a long enough timeline the survival rate for everyone drops to zero"

Thu, 12/06/2012 - 10:35 | 3039055 Aurora Ex Machina
Aurora Ex Machina's picture

Interesting it was holding TransOcean [down 152>48 since 2008] who built the Deepwater Horizon rig. They've not been part of S&P since 2008. I'd look further at other holdings, but the #1 slot to Yahoo suggests an over-all ancient market analysis.


Please junk if this is wildly off-mark.

Thu, 12/06/2012 - 10:41 | 3039071 Seasmoke
Seasmoke's picture

Zero Hedge will be the last hedge standing !

Thu, 12/06/2012 - 10:56 | 3039137 drivenZ
drivenZ's picture

this is truly shocking.... not


"Schimel and Sapanski started Diamondback with Chad Loweth, who left the fund in 2010. They all previously worked at billionaire Steven A. Cohen’s hedge fund, SAC Capital Advisors LP. Schimel is Cohen’s brother-in-law."


Thu, 12/06/2012 - 11:21 | 3039248 Sudden Debt
Sudden Debt's picture

It's like a fact sheet of everything that went wrong in 2008 :)

Thu, 12/06/2012 - 12:46 | 3039513 redd_green
redd_green's picture

The 13F shows the crap they had to hold to show the regulators in, well, the 13F.   The crooked stuff we'll never see. 

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