Timeline: Hedge fund lowlights

July 2007

Two Bear Stearns hedge funds collapse, signaling subprime mortgage crisis

July 2007

Sowood Capital Management of Boston loses half its assets and winds down funds

September 2008

Financial crisis explodes and stocks plunge everywhere

June 2009


Boston’s James Pallotta winds down Raptor hedge fund after poor performance

November 2010

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FBI launches nationwide insider-trading inquiry of hedge funds with raids at Level Global Investors, Diamondback Capital Management, and Boston’s Loch Capital Management

October 2011

Raj Rajaratnam, former head of $7 billion hedge fund Galleon Group, sentenced to 11 years in prison for insider trading

November 2012

Red Sox owner John Henry closes his commodities hedge fund after lackluster performance

December 2012

Hedge fund giant SAC Capital comes under scrutiny after former manager Mathew Martoma’s arrest on insider trading charges