Pequot Capital

Pequot Capital and its CEO, Arthur J. Samberg, were charged by the SEC with insider trading and agreed to pay nearly $28 million to settle the case. A separate action against a former Microsoft employee who allegedly tipped off the firm is still pending.

Pequot Capital, one of the largest and most highly regarded hedge funds in America, is closing. The government has been investigating the firm for insider trading violations for several years. According to The Wall Street Journal, Arthur Samberg, Pequot's founder, wrote a letter to his investors...