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Tuesday, October 20, 2009

Galleon’s Traders Seek Legal Advice, Update Resumes

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.

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.

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