NEW YORK — Galleon Group’s analysts, portfolio managers and traders in New York are seeking legal advice and updating their resumes after the arrest of Raj Raj aratnam, the hedge-fund firm’s founder, led to a flood of redemption requests, said people familiar with the matter.
Rajaratnam, arrested Friday for alleged illegal insider trading and released on $100 million bail, spoke to his employees Monday, telling them he will fight the charges, according to two people familiar with his speech who asked that their names not be used. Rajaratnam also wrote to investors and employees.
“I am entirely innocent and will vigorously defend myself and our firm,” Raj aratnam, 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 Monday. 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 charges.
At least two executive recruiters said they have already started talking to Galleon employees about moving to other hedge-fund shops.
