US Attorney's Office Indicts Xiao Zhang of Pinestone Asset Management for Trade-Secret Theft
Allegations Against Xiao Zhang
The US Attorney's Office in Massachusetts has indicted Xiao Zhang for allegedly stealing trade secrets during his tenure at the global investment management firm Arrowstreet Capital. According to the charges, Zhang accessed confidential materials from China while working for the firm in 2021.
Pinestone's Response
Pinestone Asset Management, the hedge fund co-founded by Zhang in 2022, has denied any involvement in the allegations. The firm stated that the time frame of the alleged misconduct predates its establishment.
- Zhang has engaged the services of Quinn Emanuel Urquhart & Sullivan to protect his legal rights.
- If convicted, he may face significant legal penalties.
- Zhang's efforts are aimed at refuting claims concerning his previous employment and actions.
Background on Arrowstreet Capital
Founded in 1999 by Bruce Clarke, Arrowstreet Capital manages substantial assets, amounting to US$171 billion. The company has faced intense scrutiny regarding operational practices amidst the COVID-19 pandemic.
Implications for Pinestone
Despite the serious allegations, Pinestone has gained recognition in China for its performance, achieving impressive returns and managing ¥10 billion (approximately US$1.4 billion) as of July.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.