Pequot Capital Management was a multibillion-dollar
hedge fund
A hedge fund is a pooled investment fund that trades in relatively liquid assets and is able to make extensive use of more complex trading, portfolio-construction, and risk management techniques in an attempt to improve performance, such as s ...
sponsor that closed in 2010. The firm's investment funds invested in a range of markets through a variety of strategies. The firm invested in
public equities as well as
private equity
In the field of finance, the term private equity (PE) refers to investment funds, usually limited partnerships (LP), which buy and restructure financially weak companies that produce goods and provide services. A private-equity fund is both a t ...
,
venture capital
Venture capital (often abbreviated as VC) is a form of private equity financing that is provided by venture capital firms or funds to start-up company, startups, early-stage, and emerging companies that have been deemed to have high growth poten ...
,
distressed securities Distressed securities are securities over companies or government entities that are experiencing financial or operational distress, default, or are under bankruptcy. As far as debt securities, this is called distressed debt. Purchasing or holding s ...
, and various other fixed income securities. The firm closed in 2010 following allegations of insider trading.
History
Pequot was founded in 1998 by
Arthur J. Samberg. Based in
Westport, Connecticut
Westport is a town in Fairfield County, Connecticut, United States, along the Long Island Sound within Connecticut's Gold Coast. It is northeast of New York City. The town had a population of 27,141 according to the 2020 U.S. Census.
History
...
,
United States
The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country primarily located in North America. It consists of 50 states, a federal district, five major unincorporated territori ...
, the firm had additional offices in
San Francisco
San Francisco (; Spanish for " Saint Francis"), officially the City and County of San Francisco, is the commercial, financial, and cultural center of Northern California. The city proper is the fourth most populous in California and 17th ...
;
New York City
New York, often called New York City or NYC, is the most populous city in the United States. With a 2020 population of 8,804,190 distributed over , New York City is also the most densely populated major city in the Un ...
;
Los Angeles
Los Angeles ( ; es, Los Ángeles, link=no , ), often referred to by its initials L.A., is the List of municipalities in California, largest city in the U.S. state, state of California and the List of United States cities by population, sec ...
;
Greenbrae
Greenbrae is a small unincorporated community in Marin County, California. It is located south-southeast of downtown San Rafael, at an elevation of 33 feet (10 m), located adjacent to U.S. Route 101 at the opening of the Ross Valley. Part of ...
,
California
California is a state in the Western United States, located along the Pacific Coast. With nearly 39.2million residents across a total area of approximately , it is the most populous U.S. state and the 3rd largest by area. It is also the m ...
;
Menlo Park, California;
Wellesley,
Massachusetts
Massachusetts (Massachusett: ''Muhsachuweesut Massachusett_writing_systems.html" ;"title="nowiki/> məhswatʃəwiːsət.html" ;"title="Massachusett writing systems">məhswatʃəwiːsət">Massachusett writing systems">məhswatʃəwiːsət'' En ...
; and London,
United Kingdom
The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom (UK) or Britain, is a country in Europe, off the north-western coast of the European mainland, continental mainland. It comprises England, Scotlan ...
.
In 2001 Pequot was reported to be the largest hedge fund globally with $15 billion in assets.
The firm's venture capital business, Pequot Ventures, spun off on June 30, 2008, into a separate company named
FirstMark Capital.
The company is based in
New York City
New York, often called New York City or NYC, is the most populous city in the United States. With a 2020 population of 8,804,190 distributed over , New York City is also the most densely populated major city in the Un ...
. FirstMark Capital received control of Pequot Ventures' existing venture capital portfolio assets.
Closure
In May 2009, the firm announced it was closing and, in an agreement with the Securities and Exchange Commission on May 27, 2010, paid a $28 million settlement (consisting of $18 million in returned profit and $10 million in penalties). Samberg was barred from working as an investment adviser for alleged violations of
insider trading involving
Microsoft Corporation
Microsoft Corporation is an American multinational technology corporation producing computer software, consumer electronics, personal computers, and related services headquartered at the Microsoft Redmond campus located in Redmond, Washingt ...
stock occurring in 2001 and a prospective new hire of the hedgefund, David Zilkha, from
Microsoft
Microsoft Corporation is an American multinational technology corporation producing computer software, consumer electronics, personal computers, and related services headquartered at the Microsoft Redmond campus located in Redmond, Washin ...
. On May 28, 2009, with an insider trading investigation ongoing, Samberg wrote, "With the situation increasingly untenable for the firm and for me, I have concluded that Pequot can no longer stay in business." SEC awarded $1 million to Glen Kaiser and Karen Kaiser for providing information leading to the settlement.
One of the investigators of the case,
Gary J. Aguirre
Gary J. Aguirre is an American lawyer, former investigator with the United States Securities and Exchange Commission (SEC) and whistleblower.
After working in a law firm briefly, he became a public defender, then worked as a trial lawyer in C ...
, won a whistleblower case after being fired when he recommended that the investigation proceed further.
[Senate report, pp. 11–14](_blank)
"The Firing of an SEC Attorney and the Investigation of Pequot Capital Management." Joint report by the United States Senate Committee on Finance and the Senate Judiciary Committee (August 3, 2007). Retrieved February 20, 2011
See also
*
FirstMark Capital
References
Further reading
Hedge Fund Retrenches by Giving Back Almost $2 Billion New York Times
''The New York Times'' (''the Times'', ''NYT'', or the Gray Lady) is a daily newspaper based in New York City with a worldwide readership reported in 2020 to comprise a declining 840,000 paid print subscribers, and a growing 6 million paid ...
.
World's Biggest Hedge Fund Group Plans, Once More, to Split New York Times
''The New York Times'' (''the Times'', ''NYT'', or the Gray Lady) is a daily newspaper based in New York City with a worldwide readership reported in 2020 to comprise a declining 840,000 paid print subscribers, and a growing 6 million paid ...
.
Many Hedge Funds Stumble on Wrong Side of Market Surge New York Times
''The New York Times'' (''the Times'', ''NYT'', or the Gray Lady) is a daily newspaper based in New York City with a worldwide readership reported in 2020 to comprise a declining 840,000 paid print subscribers, and a growing 6 million paid ...
.
THE MARKETS: Market Place; Hedge Fund Falls Victim To Tech Bear New York Times
''The New York Times'' (''the Times'', ''NYT'', or the Gray Lady) is a daily newspaper based in New York City with a worldwide readership reported in 2020 to comprise a declining 840,000 paid print subscribers, and a growing 6 million paid ...
.
Former First Boston Chief Is Named Chairman of Hedge Fund Company New York Times
''The New York Times'' (''the Times'', ''NYT'', or the Gray Lady) is a daily newspaper based in New York City with a worldwide readership reported in 2020 to comprise a declining 840,000 paid print subscribers, and a growing 6 million paid ...
.
S.E.C. Is Reported to Be Examining a Big Hedge Fund New York Times
''The New York Times'' (''the Times'', ''NYT'', or the Gray Lady) is a daily newspaper based in New York City with a worldwide readership reported in 2020 to comprise a declining 840,000 paid print subscribers, and a growing 6 million paid ...
.
Court Says S.E.C. Lacks Authority on Hedge Funds New York Times
''The New York Times'' (''the Times'', ''NYT'', or the Gray Lady) is a daily newspaper based in New York City with a worldwide readership reported in 2020 to comprise a declining 840,000 paid print subscribers, and a growing 6 million paid ...
.
Inquiry Clouds Future for a Hedge Fund Survivor New York Times
''The New York Times'' (''the Times'', ''NYT'', or the Gray Lady) is a daily newspaper based in New York City with a worldwide readership reported in 2020 to comprise a declining 840,000 paid print subscribers, and a growing 6 million paid ...
.
Panel Is Told S.E.C. Stopped a Hedge Fund Inquiry New York Times
''The New York Times'' (''the Times'', ''NYT'', or the Gray Lady) is a daily newspaper based in New York City with a worldwide readership reported in 2020 to comprise a declining 840,000 paid print subscribers, and a growing 6 million paid ...
.
Pequot Says S.E.C. Won't Take Action New York Times
''The New York Times'' (''the Times'', ''NYT'', or the Gray Lady) is a daily newspaper based in New York City with a worldwide readership reported in 2020 to comprise a declining 840,000 paid print subscribers, and a growing 6 million paid ...
.
External links
Pequot Capital Management(company website)
FirstMark Capital(company website)
{{Authority control
Financial services companies established in 1998
Defunct hedge funds
Hedge fund firms in Connecticut
Venture capital firms of the United States
Companies based in Westport, Connecticut