New York-based hedge fund Tiger Asia Management LLC will return outside capital to investors by the end of August amid an ongoing investigation by Hong Kong regulators into possible insider trading, founder Bill Hwang told clients in a letter sent on Monday.
Hong Kong’s Securities and Futures Commission alleges that Tiger Asia was given advance notice by third parties of forthcoming share placements by China Construction Bank Corp and Bank of China Ltd and shorted shares in the stocks ahead of the placements being publicly announced.
Tiger Asia has denied all the allegations.
Tiger Asia had regulatory assets under management of $2 billion at the end of December 2011, according to a filing with the U.S. Securities and Exchange Commission.
“I am writing to let you know that after much consideration, and due largely to a prolonged legal situation, I have decided to return outside capital to investors effective at the end of the month,” Hwang said in the letter obtained by Reuters.
Read More: Reuters