Matthew Goldstein and Svea Herbst-Bayliss report that Boston-based Loch Capital Management has been “hit hard” by redemptions since the friend, Steven Fortuna, of founders (and bros) Timothy and Todd McSweeney pleaded guilty to insider trading, and agreed to cooperate with the government re: perhaps ratting out cohorts. It doesn’t appear that Fortuna and the McSweeneys have ever worked together but the trio go way back (born, raised, continue to live in Massachusetts, all played basketball together, and get their drink on every now and then) so obviously The Tuna could potentially have dirt. Though some investors told the reporters the reason behind the redemptions is the relationship between the the admitted criminal and their managers, Reuters notes that the requests “may be nothing more than an overreaction based on speculation” or simply “an indication of just how nervous hedge fund investors remain a year after the Bernard Madoff scandal left a lot of investors looking foolish.” Neither brother (nor any of their employees) has been charged with any wrongdoing, but they are telling anyone looking to poke around to piss off, ASAP:

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