“It’s a trading term, that is a polite way to say ‘shove it’”
Galleon’s liquidating, no surprise there. New Castle’s going to be done on 11/30.
iheartiheartmath Wrote: ------------------------------------------------------- > Galleon’s liquidating, no surprise there. New > Castle’s going to be done on 11/30. Raj made $20m by insider trading but he paid 100m for his bail.
SAN FRANCISCO (MarketWatch) – Galleon Group is shutting down its hedge funds in the wake of insider trading charges against the firm’s billionaire founder Raj Rajaratnam. “I have decided that it is now in the best interest of our investors and employees to conduct an orderly wind down of Galleon’s funds while we explore various alternatives for our business,” Rajaratnam wrote in a letter to employees, clients and friends. Rajaratnam, who reiterated that he’s innocent of all charges, stressed that Galleon’s hedge funds are liquid, meaning the positions can be sold quickly without losing much value. Galleon hopes to return money to investors in a way that’s consistent with its usual redemption process, according to a person familiar with the situation. This means money could be returned by Jan. 1, 2010. See related story. Rajaratnam also said Galleon is “seeking the best way to keep together what I believe is the best long/short equity team in the business.” Galleon has been approached by firms interested in buying the business, according to the person familiar with the situation, who spoke on condition of anonymity. Galleon was rocked Friday when Rajaratnam was charged and arrested for allegedly taking part in what federal prosecutors claim is the largest hedge-fund insider case ever. See full story. Rajaratnam posted $100 million in bail and was released over the weekend. On Monday, he was back at Galleon’s headquarters in New York. Some hedge fund firms that suffered big losses have been snapped up by rivals in recent years. Although such deals weren’t triggered by insider-trading charges. Knight Securities /quotes/comstock/15*!nite/quotes/nls/nite (NITE 18.04, -3.75, -17.22%) agreed to sell its Deephaven Capital Management hedge fund business to Brian Stark and Mike Roth in January for an upfront payment of $7.3 million. See full story. Citadel Investment Group, run by Kenneth Griffin, bought most of Sowood Capital’s portfolio when that firm ran into trouble in 2007. See full story. “Everything is for purchase or sale at the right price,” said Mitchell Kaye, managing director at Navigant Capital Advisors, which advises distressed financial institutions including hedge funds. For a firm that wants to get into Galleon’s specialty of technology investing, it’s probably easier to buy a whole trading business from the firm, rather than individually hiring traders let go by the firm, Kaye explained. “You can’t put together a constellation by buying a few stars,” he added. Kaye also said the insider trading allegations may not completely undermine investors’ confidence in the ability of some Galleon traders to generate returns. “There was a culture of aggressive information seeking, but you can’t build an entire long-term business around that,” he added. “We have built our business on the fundamental belief in rigorous investment analysis combined with active trading around core positions,” Rajaratnam wrote on Wednesday. “We have encouraged and invited our investors to attend our daily research morning meetings. Many of you have done so and got a first hand look at our process. This research process is the core of our investment and trading strategy.” Alistair Barr is a reporter for MarketWatch in San Francisco.
http://www.pressconnects.com/article/20091020/NEWS01/910200311/1112/Binghamton-High-grad-charged-in-scheme At Binghamton High School, Danielle Chiesi was known as a smart, popular young woman who competed in beauty pageants. Binghamton attorney Eugene Faughnan, who also graduated in 1983, didn’t know Chiesi well, but he remembered her. “She was obviously smart and very attractive,” he said. Bob Baxter Jr., who was an assistant principal at the time, also recalled her as a top-notch student. Chiesi was crowned Miss Southern Tier Teenager of 1981, a photograph from the Press & Sun-Bulletin archives shows.
iheartiheartmath Wrote: ------------------------------------------------------- > http://www.pressconnects.com/article/20091020/NEWS > 01/910200311/1112/Binghamton-High-grad-charged-in- > scheme > > At Binghamton High School, Danielle Chiesi was > known as a smart, popular young woman who competed > in beauty pageants. > > Binghamton attorney Eugene Faughnan, who also > graduated in 1983, didn’t know Chiesi well, but he > remembered her. > > “She was obviously smart and very attractive,” he > said. > > Bob Baxter Jr., who was an assistant principal at > the time, also recalled her as a top-notch > student. > > Chiesi was crowned Miss Southern Tier Teenager of > 1981, a photograph from the Press & Sun-Bulletin > archives shows. Top notch student? I’ll bet you she used her looks to get math nerds to do HW for her and let her cheat off of them on exams. Similar to how she got grown-up math nerds to give her insider info.
I was thinking about Raj the other day. Did he harbor an enviroment of “Whatever it takes?” or did his analysts simply get so fixated on picking winners that the line became blurred? Does anyone have a good walkthrough of how this firm became the now defunct hedge fund?