Galleon Preparing to Unwind its Hedge Fund Holdings
Galleon Group is winding down its hedge fund holdings, the company's embattled CEO Raj Rajaratnam said in a statement.
Rajaratnam and six other people were arrested last week for their alleged roles in what authorities said was as insider trading scam in which information was bought and sold to help benefit the funds the company managed.
Galleon now will explore options to liquidate the $3.7 billion in its portfolio.
"I have decided that it is now in the best interest of our investors and employees to conduct an orderly wind down of Galleon's funds while we explore various alternatives for our business," Rajaratnam said.
The process to liquidate the funds likely will be consistent with its standard redemption policy, a source familiar with the matter said.
The statement said the firm will look to maintain its long-short equity team and has been keeping investors appraised of developments and the strategy going forward.
"I want to reiterate that I am innocent of all charges and will defend myself against these accusations with the same intensity and focus I have brought to managing our investors' capital," Rajaratnam said.