Loch Capital experiencing high redemptions due to friendship with witness in Galleon Case
| January 26th, 2010 | ||
| Loch Capital Management is currently facing high redemptions due to the close friendship between its co-founders Timothy and Todd McSweeney and Steve Fortuna, the co-founder of S2 Capital Management. Mr. Fortuna, who has ties to the Galleon Group scandal, recently pled guilty to exchanging insider information about Dell Computer Inc. According to Reuters, Loch Capital focuses on investing in technology companies and once had over $2 billion in assets. Recently though, Loch Capital has performed less than impressively. Last year, Loch Capital’s two main funds were down 1.5% amidst a 20% average return for the industry and it now faces redemptions that people familiar with the fund estimate at over $200 million. Although there has been no indication in the court filings that federal prosecutors suspect the McSweeney brothers, their friendship with Fortuna, who’s alleged to have exchanged information with another friend, has alarmed investors. | ||
For Detailed Investor Profiles on these Investors, click below: |
Galleon Management |
Loch Capital Management LLC |
S2 Capital Management |
Related People: Gary Rosenbach;
Related Entities: Loch Capital Fund II;
Related Article Tags: Hedge Fund Fraud and Ponzi Scheme News
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