The US Securities and Exchange Commission has sent subpoenas to major Wall Street banks regarding the hedge fund Situational Awareness, according to people familiar with the matter.
The information being sought is related to the trading activity of the hedge fund, which came under pressure and was forced to exit many of its positions last month, said the people, who asked not to be identified discussing a confidential matter. The New York Times earlier reported on the SEC’s subpoenas.
Read More: The 24-Hour Race to Salvage Situational Awareness’ AI Bets
A spokesperson for the SEC declined to comment. An SEC inquiry doesn’t mean that a firm or individual is the focus of an investigation and a probe by the regulator can end without an enforcement action.
The fund began liquidating some of its equity positions as it faced a barrage of margin calls during last month’s AI stock rout. Ken Griffin’s Citadel stepped in to buy the bulk of its public stock bets.
“It is to be expected that regulators would closely examine any funds that are high profile, produce significant returns, or have particularly dramatic drawdowns,” Situational Awareness said in a statement on Monday. “We are a highly-regulated business and will cooperate to the fullest extent with any regulatory request.”
This story originally appeared on Fortune
