The Pequot has sunk!

29 05 2009

Looks like Captain Ahab Samberg did not get his whale.  Amidst a probe by the Securities and Exchange Commission, one of the more powerful hedgefunds, Pequot Capital Management, has decided to close shop.  The SEC has been keeping an eye on the legendary investor, Arthur Samberg for possible insider trading involving Microsoft.  Sanberg has decided to liquidate some of his largest hedge funds. From Bloomberg:

The U.S. Securities and Exchange Commission in January reopened a probe into whether Samberg’s funds illegally profited by trading on inside information about Microsoft Corp., people familiar with the matter said at the time. Investigators learned of documents that show former Microsoft employee David Zilkha may have obtained confidential information in 2001 about the software maker, said one of the people. Zilkha left the Redmond, Washington-based company that year to join Pequot, where he worked for less than a year.

“Public disclosures about the continuing investigation have cast a cloud over the firm and have become a source of personal distraction,” Samberg, 68, wrote in the letter, a copy of which was obtained by Bloomberg News.

This is the third complaint by the SEC against Pequot.  Here is a copy of the latest complaint.

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