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.
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.