Thanksgiving weekend started off with a Bang — and a bust — for the hedge funds, about a day after rumors began circulating that a major insider trading investigation was going to blow wide open.
Talk about a case of the Mondays. Reuters reports: “At about 10 a.m., FBI agents, including one in a sweatshirt, entered Diamondback offices and shouted into the trading room. They ordered about 60 employees to halt work immediately and herded them into a conference room for about one hour, according to one employee at the firm.”
This is all part of an ongoing investigation, and no one has admitted any wrongdoing, as expected.
But other reliable sources reports that Diamondback’s returns at times have been prenaturally and questionable too good — almost three times better than its peers’ returns.
Diamondback gained a whopping 73 percent from mid-2005 through July this year, compared with 22 percent for funds with a similar trading approach, as tracked by Chicago-based Hedge Fund Research Inc. The fund beat so-called multistrategy funds in 2006, 2007 and 2008, when it skirted losses from the credit crisis. It has lagged behind the strategy average since then.
What else is new . Risk Seeking greediness cheeting continues in Wall St.The US general public knows this is going on and will go on as long as there is greed in Wall St. This is one of the main reasons for retail investors not participating in the markets. It will continue to be a traders market only so take your money averyday and run. Buy and Hold does not work and the rich greedy cheeters manipulating the Equity Markets will continue.
Have a safe and funfilled Thanksgiving holiday
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