Thursday, 2 October 2014
Last updated 14 hours ago
Mar 14 2011 | 2:02pm ET
Prosecutors in the Raj Rajaratnam insider-trading trial released the three wiretapped conversations they played on the first day of testimony last week.
In the first, Rajaratnam tells Rajiv Goel, a former Intel Corp. employee who is a cooperating witness in the case, that he bought a large number of PeopleSoft shares in Goel's brokerage account because "I can't buy anymore" and "we know because one of our guys is on the board that they are going to put $41 million in escrow" and that their acquisition would be at $3 per share above the current price. Rajaratnam also complains about Charles Schwab, Goel's brokerage, which he said charged Goel $0.50 more per share than they should have.
In the second, he spoke with a pair of Galleon Group traders, Ian Horowitz and Adam Smith. After Horowitz updates Rajaratnam on Galleon's positions and the market's moves on the day, Smith, who has pleaded guilty in the case, comes on the line to discuss a deal involving Vishay Intertechnology that would never happen.
Finally, jurors heard on the third tape Anil Kumar, a former McKinsey & Co. director, talking about a deal involving Advanced Micro Devices.
"I think you cannot do wrong," Kumar told Rajaratnam. "There will be such a boost from the announcement."
"Should I buy a million?" Rajaratnam asks.
"Yea, go ahead and do that," Kumar, who has also pleaded guilty and is cooperating with prosecutors, replied. Kumar was the second witness called by the prosecution.
Kumar and Rajaratnam then spend a long time discussing former McKinsey chief Rajat Gupta, identified by prosecutors as Rajaratnam's source for inside information about Goldman Sachs and Procter & Gamble; Gupta sat on both boards. The two talked about Gupta's plan to join Kohlberg Kravis Roberts.
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Sep 30 2014 | 9:29am ET
The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…
High frequency trading is not evil, it is not a conspiracy and it really is not new; it is the natural evolution of the professional trading community making markets, providing liquidity and hopefully...