Friday, October 16, 2009
Straight Out Of Midtown: Hedge Fund Galleon Group Commissioned Its Own Rap Song
All the good stuff on Galleon is coming out after Raj Rajaratnam and several others were criminally charged with insider trading by the SEC this morning.
Galleon was what I refer to as a datapoint hedge fund (as distinct from long-term value investing, technical trading, quant, risk arb, CTAs, etc.). They probably called themselves event driven long/short or some BS description like that, but in reality they were trying to gain a near-term information edge and use it to make assessments about whether a company will beat or miss, etc. This is perfectly legal, but if pursued too aggressively can easily lead you to a hazy line (or beyond, as alleged in Galleon's case).
Anyway, apparently Raj commissioned a rap song about Galleon. Lord willing Raj expensed this to the fund too. We hope against hope...
[Hat tip: CK]