Pequot Shuttered Amid Insider Trading Probe

Law360, New York (May 27, 2009, 12:00 AM EDT) -- The head of Pequot Capital Management Inc. told investors Wednesday that he was shuttering the hedge fund because an insider trading probe had "cast a cloud" over the firm.

In a letter to investors, Arthur Samberg said that public disclosures about the continuing investigation had become a source of distraction.

"With the situation increasingly untenable for the firm and for me, I have concluded that Pequot can no longer stay in business as an investment adviser," Samberg wrote.

A probe by the U.S. attorney's office and...
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