Hedgie players bailing from insider trading crooks outfit despite blustering denials.....
Galleon’s Traders Talk Stocks, Earnings, as Investors Seek Cash
By Katherine Burton and Saijel Kishan
(..Note: only Hillary Clinton can get away with this kind of BS, as Martha Stewart found out..)!!!
Oct. 20 (Bloomberg) -- Galleon Group’s analysts, portfolio managers and traders will meet this morning in New York even as they raise cash to meet redemption requests after the arrest of Raj Rajaratnam, the hedge fund firm’s founder, on insider trading charges, people familiar with the matter said.
Rajaratnam, arrested on Oct. 16 for alleged insider trading and released on $100 million bail, spoke to his employees yesterday, telling them in a 10-minute speech that he will fight the charges, according to two people familiar with his speech who asked their names not be used because the comments were private. Rajaratnam also wrote to investors and employees.
“I am entirely innocent and will vigorously defend myself and our firm,” Rajaratnam, 52, said in his letter. “As I move forward on my defense, I want to assure you that our commitment to our investors and employees will remain unwavering.”
Redemption requests totaled $1.3 billion, the Wall Street Journal reported yesterday. The firm has assets of $3.7 billion, including about $1 billion from Rajaratnam and employees, according to two people familiar with Galleon. Retaining clients and top managers may prove challenging as Rajaratnam fights the charges. At least two executive recruiters said they have already started talking to Galleon employees about moving to other hedge fund shops.
bloomberg.com
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