Investors flee fund with ties to Galleon witness

Loch Capital Management, a technology-oriented hedge fund that once boasted over $2 billion (1.2 billion pounds) in assets, has been hit hard by redemptions because of close personal ties between its founders -- twin brothers Timothy and Todd McSweeney -- and a key witness in the still-unfolding Galleon investigation.

The reason? Federal prosecutors revealed that Steven Fortuna, a co-founder of hedge fund S2 Capital Management, had pleaded guilty in the ongoing insider trading investigation and was cooperating with federal authorities, said at least three people familiar with Loch Capital.