FBI Raids Conn. Hedge Funds ...as part of extensive insider-trading investigation By Evann Gastaldo, Newser Staff Posted Nov 22, 2010 1:09 PM CST 4 comments Comments In this March 8, 2010 file photograph, a sign for Wall Street is shown near the New York Stock Exchange. (AP Photo/Mark Lennihan, file) (Newser) – The FBI is undertaking an extensive insider-trading investigation, and raided two hedge fund offices in Connecticut today that are presumably part of it. Former managers at Steve Cohen's SAC Capital Advisors run both raided firms, Diamondback Capital Management LLC and Level Global Investors LP, the Wall Street Journal reports. The move follows the Journal's recent article about the massive insider trading investigation. "The FBI is executing court-authorized search warrants in an ongoing investigation," says an FBI spokesperson. A Level Global rep said, "We can confirm that agents from the Federal Bureau of Investigations visited our offices this morning as part of what we believe to be a broader investigation of the financial services industry discussed in media reports over the weekend. We are cooperating fully with the authorities and, at the same time, we are fully operational and continue to work diligently for the benefit of our investors."