A few weeks before Christmas, documents were released by the government revealing that at least one of the cooperating witnesses in its Insider Trading Fest(ivus) was currently employed at a hedge fund. Some people said the CW was with Level Global. The firm assured clients earlier this week that after conducting “extensive internal factual correlation analysis and cross-referencing the facts in the complaints to our firm’s records,” they can say confidently such is not the case.

Dear Investor:

We are writing to address investor inquiries related to the two most recent complaints filed by the U.S. Attorney’s Office in connection with the Government’s ongoing investigation into alleged insider trading in the financial services industry. As
you know we have been cooperating with the U.S. Attorney’s Office and have met with them on several occasions, in part, to discuss the challenges posed by speculation in the press about its investigation and Level Global’s need to communicate candidly with our investors.

Among other things, the press has speculated that Level Global is the “hedge fund located in New York, New York” referred to in recent complaints filed by the Government, and that one of the confidential cooperating witnesses is a Level
employee or former Level employee.

As is the case each time there is a new development in the U.S. Attorney’s investigation, we have conducted an extensive internal factual correlation analysis, cross-referencing the facts in the complaints to our firm’s records. Our experienced outside legal counsel has also conducted its own analysis. Based on all of our work and analysis, we have concluded that these complaints do not appear to be referencing Level or Level personnel.

Sincerely yours,

Level Global Investors, L.P.