Galleon Group winding down hedge funds after founder arrested for insider trading

October 21, 2009 by · Leave a Comment
Filed under: Stock Market News 

After the bombshell dropped on the public and Galleon investors that the funds founder Raj Rajaratnam was allegedly involved in a insider trading operation that was helping generate attractive profits to many investors including some college endowments.  Redemption requests  were over 1/3rd of the hedge funds total capital at the time of this writing.

Mr. Rajaratnam has claimed his innocence and he plans to fight these charges in court and closing down the fund was needed so he could focus on this defense in a statement made in the press release.

Reuters, New York – Hedge fund firm Galleon Group said it is winding down its funds, less than a week after its founder was arrested and charged with running one of the biggest insider-trading schemes ever involving a hedge fund.

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