Ohio School Employees Retirement System investment staff is monitoring both Diamondback Capital Management and Level Global Investors, which managed $72.4 million and $35.1 million, respectively, for the $9.7 billion fund as of Oct. 31, said Tim Barbour, a spokesman.
Andrew Pratt, a spokesman for the New Jersey Division of Investment, which manages the state's $70.2 billion pension fund, said the investment staff at the Trenton-based division “will monitor the events connected with these hedge funds in order to do everything we can to protect our investments. ”The New Jersey fund has $83 million invested directly in the Level Global LP hedge fund, managed by Level Global Investors.
Mr. Pratt said the New Jersey pension fund also has small investments in both SAC Capital Advisors and Diamondback Capital Management through an $85 million investment in Arden Alternative Advisers, a hedge fund of funds managed by Arden Asset Management. He did not disclose the size of Arden's stakes in SAC and Diamondback.
Ohio's Mr. Barbour said both hedge fund managers have been in contact with the Columbus-based fund to explain the situation and reassure clients that they are cooperating with the investigation by the FBI, Mr. Barbour said.
But formal action hasn't been taken regarding the two hedge fund companies “because we really don't have enough information,” according to Mr. Barbour.
Federal officials, led by U.S. Attorney Preet Bharara in Manhattan, are investigating whether money managers might have profited from insider trading. The offices of hedge funds Level and Diamondback, run by former traders of Steven A. Cohen's SAC, were searched Monday by FBI agents.
“This is going to go beyond hedge funds,” said Stewart Massey, chief investment officer at Massey Quick, which manages $2 billion on behalf of endowments, foundations and wealthy families. “This is going to involve traditional money managers also.”
SAC Capital Advisors and Wellington Management received requests for documents from federal investigators looking into insider trading, according to two people familiar with the matter. Janus Capital Group also was asked for information.
Wellington said on an internal conference call Monday that it's conducting a review of records, and that it didn't engage in illegal trading, according to one of the people, who asked not to be named because the firm is private. Janus said Tuesday it received a request for “general information and intends to cooperate fully with that inquiry.”
No allegation of wrongdoing has been made against SAC, which manages $12 billion, or Janus and Wellington.
Jonathan Gasthalter, a spokesman for SAC, declined to comment.
In a call Tuesday, Wellington officials disclosed the document request, without specifying what kind of information investigators are seeking, the person said. Sara Lou Sherman, a spokeswoman for Wellington, declined to comment.
Janus “maintains rigorous compliance procedures” and “has confidence in the integrity of its processes and its people,” Shelley Peterson, a spokeswoman for the firm, said in an e-mailed statement.
Jessie Erwin, a spokeswoman for Mr. Bharara's office, and Richard Kolko, a spokesman for the FBI, declined to comment.
Bloomberg contributed to this story.