Wednesday, 1 October 2014
Last updated 11 min ago
May 2 2011 | 12:45pm ET
Consulting giant McKinsey & Co. has taken a beating during the Raj Rajaratnam insider-trading trial, with one former director admitting he broke the law and its former head fingered as a major source of confidential information. But McKinsey's troubles haven't—and shouldn't—taint the entire management consultancy industry, its biggest rival says.
Bain & Co. Chairman Orit Gadiesh told the Financial Times that the Boston-based company hasn't received a single inquiry from a client in the wake of the Rajaratnam case. And unlike McKinsey, which has been wringing its hands over possible new risk controls following the accusations against Anil Kumar and Rajat Gupta, Gadiesh said her firm won't be changing anything.
"When I became chairman, just for myself, I said I would never trade in stock directly anywhere in the world because I don't know where in the world we might be working," she told the FT. Gadiesh said that, in addition to her personal discretion, Bain has a strict training regimen and subjects employees to spot checks, weekly reminders and tight investment restrictions.
Kumar, a former McKinsey director, has pleaded guilty in the Rajaratnam case. Gupta, the consultancy's former head who is accused of passing tips about Goldman Sachs, on whose board he sat, has not been charged criminally but is facing an administrative action by the Securities and Exchange Commission.
Rajaratnam himself is awaiting the word of the jury as to his fate. The Galleon Group founder faces decades in prison if he is convicted.
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...