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."