jokerburningmoneytbiThe insider trading scandal ended up costing three hedge funds, Diamondback, FrontPoint, and Level Global, a combined $9 billion.

Of course, we already knew that redemptions cost Diamonback $1.3 billion in redemptions and that FrontPoint was hit with $3 billion in redemptions

And that Level Global, which used to manage $4 billion, is closing

But when you add it all up with the additional news from Pensions and Investments today that FrontPoint was hit with an additional $500 million in redemptions in the first quarter, the insider trading scandal has cost hedge funds a stunning ~$9 billion.

From P&I:

Multistrategy hedge fund manager FrontPoint Partners, touched by a separate insider-trading investigation, received redemption requests for an additional $500 million for the first quarter, confirmed a source who asked not to be identified.

And that's just three of the many hedge funds that have been tied to the investigation. 

Add Barai Capital ($100 million) and STG Capital ($200 million), which have had to close after their involvement in the scandal, and the dozens of other hedge funds that have been ensnared in the investigation, and the total could hit much higher.

Translation: there's a lot of money up for grabs for the asset managers who aren't involved in all this.

Nine billion is $180 million in 2% management fees alone.