5.28.2009 Pequot Capital Management and its hedge funds announced that the business will be shut down. Since 2001, the firm has been the subject of investigations by the SEC and U.S. Attorney’s Office. As the investigation reopened late last year, the fallout from the public disclosures were more than the firm could overcome and the decision was made to shut the business down. Pequot will spin out its Matawin and Special Opportunities funds, while liquidating its core funds. At one point, Pequot had the largest hedge fund in the world.

Click http://www.scribd.com/doc/15867284/Pequot-Letter-to-Investors to access Pequot’s Letter to Investors.