The founder of Pequot Capital Management Inc says the fund firm will shut down due to an investigation into the firm’s activities, according to a letter to clients published in media reports Wednesday.
Reports in January said the U.S. Securities and Exchange Commission reopened an investigation into possible insider trading the firm.
“With the situation increasingly untenable for the firm and for me, I have concluded that Pequot can no longer stay in business as an investment adviser,” founder Arthur Samberg wrote, according to Bloomberg.
“Public disclosures about the continuing investigation have cast a cloud over the firm and have become a source of personal distraction,” he said.
The firm had managed $3.47 billion as of May 15, down from $4.3 billion November last year, Bloomberg reported, citing a regulatory filing.