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Diamondback Capital Has Done Right By Its Clients

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Anyone thinking of making any sudden moves should remember this.

Diamondback Capital Management LLC, one of three hedge funds raided by Federal Bureau of Investigation agents, returned three times as much as peers since being founded in 2005, according to an investor letter. Diamondback gained 73 percent from mid-2005 through July this year, compared with 22 percent for funds with a similar approach, as tracked by Chicago-based Hedge Fund Research Inc.

Even more comforting is this:

Diamondback, which manages about $5.8 billion, has returned about 6.3 percent this year and 23 percent last year, compared with gains of 12 percent and 25 percent, respectively, for multistrategy funds.

Do those look like returns a fund that's up to no good? Not so much.

FBI Target Diamondback Beat Peers [Bloomberg]