New York (HedgeCo.Net) – $100 million hedge fund, Lodestone Natural Resources, is being liquidated after U.K. regulators detained CIO Tim Whyte and founding partner Carl Linderum for questioning as part of an investigation into alleged insider trading, Bloomberg reports.
“Lodestone joins U.S. hedge funds including Diamondback Capital LLC and Level Global Investors LP in failing to survive an insider-trading probe. Diamondback’s founders said in December they would liquidate the hedge-fund firm after clients sought to pull $4.3 billion, or 74 percent of its assets under management, following a raid by the FBI in 2010.”
The hedge fund managers have not been publicly accused of any wrongdoing. Their hedge fund gained more than 8 percent in 2012.
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