Why the Sell-Off? Could It Be Fears about FBI Raids on Level Global LP?

November 22, 2010 3:03 pm

The equity markets sold off hard this morning on fears that the Ireland bailout would not be enough to contain the problem. At least that was the initial thoughts from pundits.

Then, news broke about the FBI raiding three different hedge fund offices in relation to the insider trading scandal announced over the weekend. Interestingly, there has been some comment that one of the hedge funds in question may need to start liquidating funds as withdrawal requests begin to come in – once the firm’s name(s) are released. (WSJ Article HERE)

Below is the top holdings of Level Global as of the latest 13F filing.

Clearly Sina (SINA) and Virgin Media (VMED) have been soft today, but the drop for VMED on almost double to average volume may show that a few investors are trying to get ahead of any forced liquidations. Notice that it is a significant holding for Level Global.

(Click to enlarge)

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