- Galleon Clients Abandon Ship
- ‘Pirate’ Raj facing mutiny
- Rajaratnam’s Letter to Employees
- Galleon’s Traders Seek Legal Advice, Update Resumes
- Hedge funds brace for fallout from insider-trading bust
- Thin Line Separates Insider Trading and Research
- Rajaratnam Case Is ‘Wake-Up Call’ for Silicon Valley Companies
- ‘Unusual activity’ in Hilton shares led to Rajaratnam charges
Galleon Clients Abandon Ship – Wall Street Journal
Hedge-fund giant Galleon Group, facing heavy investor withdrawal requests after Friday’s arrest of co-founder Raj Rajaratnam, moved to unload some of its technology stocks and other holdings to raise cash
Investors have sought to withdraw about $1.3 billion of the $3.7 billion in assets Galleon manages, traders say. Moreover, two of the brokerage firms Galleon normally deals with, Bank of America Merrill Lynch and Barclays PLC, have told Galleon they will no longer trade securities positions with the fund firm, according to a person close to the situation…..
Most of Galleon’s hedge funds allow investors to withdraw money only quarterly, although the technology fund run by Mr. Rajaratnam allows monthly redemptions. There is a 45-day notice period, so Galleon doesn’t need to hand back any money until Jan. 1…..
‘Pirate’ Raj facing mutiny – NY Post
…..The hedge fund had on hand five days of liquidity — cash or easily converted assets — meaning that unless Galleon can raise money quickly it could be forced to close, sources said.
Compounding that squeeze is the fact that investors are looking to take out their money…..
Rajaratnam’s Letter to Employees
Dear Galleon Employees, Clients and Friends:
During this challenging time, I wanted to take a moment to address you directly. As I am sure you understand, I am not able to respond in detail to the charges recently brought against me. But let me be clear: they are, without exception, entirely baseless. I am innocent and will vigorously defend myself and our firm.
As I move forward on my defense, I want to assure you that our commitment to our investors and employees will remain unwavering. I will continue to be here working for Galleon, and the firm will continue to serve its clients with effectiveness and integrity. Thank you for your ongoing support.
Sincerely,
Raj
Galleon’s Traders Seek Legal Advice, Update Resumes – Bloomberg
Galleon Group’s analysts, portfolio managers and traders in New York are seeking legal advice and updating their resumes after the arrest of Raj Rajaratnam, the hedge-fund firm’s founder, led to a flood of redemption requests, people familiar with the matter said…..
Hedge funds brace for fallout from insider-trading bust – Washington Post
Some hedge fund managers are bemoaning the arrest Friday of Raj Rajaratnam, the billionaire co-founder of Galleon Group, at a time when Congress is preparing to move ahead on legislation to overhaul financial regulation….
“It makes everything harder,” said Jerome D. Abernathy of Stonebrook Capital Management, a hedge fund with $300 million under management. “Whatever regulations are being considered, this is just a lubricant for their passage.”….
Thin Line Separates Insider Trading and Research – NY Times
The most precious commodity on Wall Street is information, and savvy players will do almost anything for it.
Some investment funds canvass doctors to scout out blockbuster drugs. Others pay meteorologists to forecast weather that will affect the price of oil and wheat. And still others hire corporate executives to provide an inside view of companies and industries.
But now some of Wall Street’s biggest hedge funds are watching nervously as prosecutors say that Raj Rajaratnam, a billionaire fund manager, went too far in this relentless quest for a trading edge….
Rajaratnam Case Is ‘Wake-Up Call’ for Silicon Valley Companies – Bloomberg
The U.S. investigation into alleged insider trading by Galleon Group and technology executives may prompt Silicon Valley companies to clamp down on how employees handle sensitive financial information.
“It’s a wake-up call, if not an extraordinary reminder that they need to make sure their employees understand the rules of insider trading and what they can and can’t talk about,” said Jahan Raissi, former senior counsel in the enforcement division of the U.S. Securities and Exchange Commission. “It’s also a wake-up call that federal prosecutors aren’t going about this as business as usual.”…..
‘Unusual activity’ in Hilton shares led to Rajaratnam charges – Financial Times
Unusual trading in shares of Hilton Hotels detected by the New York Stock Exchange in 2007 contributed to the investigation that led to billionaire investor Raj Rajaratnam and five other individuals being charged with insider trading last week.
After detecting “unusual activity and after investigating we referred them to the SEC,” said NYSE Regulation on Monday….
Tags: Galleon, Hedge funds, Insider Trading, Legal, Raj Rajaratnam, Revolving Door
