Pequot Capital Management, the hedge fund firm run by the controversial Arthur Samberg, is shutting down, as an inquiry into possible insider trading has been revived, according to media reports. Recall that Pequot found itself in a harsh spotlight after an SEC attorney went public with charges that his bosses thwarted his investigation of Pequot and was prevented from questioning then chairman John Mack, a big political donor. 

A subsequent Congressional investigation raised issues with the conduct of the SEC. The investigation at hand concerns the fund's transactions in Microsoft's shares amid revelations that Samberg paid $2.1 million to a former Microsoft employee, David Zilkha, who later joined Samberg's fund. The probe is looking into whether Zilkha obtained and passed on in the way of confidential information. 

For more:
- here's a New York Times article

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