14/02/2011
Level Global Investors liquidates its activities
p { margin-bottom: 0.08in; } In a letter to investors on Friday, David Ganek, founder in 2003 and chairman of Level Global Investors LLP, has announced that the alternative management firm (USD4bn) has begun to liquidate its positions, and is planning to reimburse shareholders by 31 March, the Wall Street Journal reports. David Ginek, who worked closely with Steven Cohen (SAC Capital) says that the fund has generated returns of 88.9% since its launch, which comes out to 9% per year, compared with 3.3% for the S&P 500.The closure is explained as the result of a “cloud of uncertainty” due to an investigation by the US authorities into insider trading. Level Global was subpoenaed in November, but was not found to have committed any irregularities. The firm did engage the services of expert networks.The newspaper reports that four people with ties to hedge funds were charged last week as a result of the investigation, including Noah Freeman and Donal Longueuil, former fund managers at SAC Capital. The former has pleaded guilty to securities fraud and conspiracy, and is cooperating with investigators; the latter is charged with conspiracy to commit securities fraud, conspiracy to commit wire fraud, and obstruction of justice.
