Insider Trading Small Hedge Funds
Small Hedge Funds Hit Hard by Insider Trading Probe
Steven T. Glass, the founder of STG, which once had more than $200 million under management, notified investors last week he was shutting down his fund, said one investor familiar with the situation, who declined to be identified.
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.
The Wall Street Journal reported on Monday that Barai Capital Management, a small $80 million hedge fund raided by federal agents in November, is also closing.
Four people familiar with the investigation said both STG and Barai regularly employed Primary Global consultants to gather information on tech stocks. Source