Last week we reported that hedge fund STG Capital had abruptly closed its doors, though the reason was unclear. Today Reuters’ Matthew Goldstein and Emily Chasan have a bit more color:

STG is the second New York hedge fund to shut down in the wake of a series of arrests of people associated with Primary Global Research, a California-based expert network firm that matches hedge funds with industry consultants. Four people familiar with the investigation said STG…regularly employed Primary Global consultants to gather information on tech stocks.

Glass said in an email to investors that his fund’s relationship with Primary Global had nothing to do with the closing, but he declined to elaborate.

“You are factually incorrect in much of that, sir,” he said. “As I informed our investors last week, assets were not at a critical mass to sustain the business.”


US Insider Trading Probe Takes Toll On Small Funds
[Reuters]

Comments (6)

  1. Posted by Jason STATHAM. | January 31, 2011 at 11:15 PM

    Does ANYONE have the damn Morgan Stanley bonus numbers?!? You can’t tell me that all 50,000 MS employees heeded Gorman’s threats about not saying anything, can you?!??

  2. Posted by Guest | January 31, 2011 at 11:23 PM

    shut up.

  3. Posted by Pomp-Ass | January 31, 2011 at 11:33 PM

    Want to know more about STD Capital – instead of hearing from your punkass

  4. Posted by Sphincter | February 1, 2011 at 12:56 AM

    never heard of these guys

  5. Posted by LordJewmongous | February 1, 2011 at 1:51 AM

    I have a rash.

  6. Posted by HFguy | February 1, 2011 at 1:08 PM

    and you never will ……anymore

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