Even though he's claiming he's innocent of insider trading charges, billionaire Raj Rajaratnam is liquidating his Galleon Group hedge fund and preparing to shut it down. In a letter sent to investors, Rajaratnam wrote, "I want to reassure investors of the liquidity of our funds and assure Galleon employees that we are seeking the best way to keep together what I believe is the best long/short equity team in the business. I want to reiterate that I am innocent of all the charges."
The head of a firm which doesn't invest Galleon told Bloomberg News, "The redemptions coming in were likely so large, and no one wants to be the last out the door. As an investor, you don’t want that in your portfolio, even if the charges haven’t been proven." The spokesman of a firm that does invest with Galleon tried to find the silver lining, "The funds are there, it’s not a Madoff-type problem."
The fund has $3.7 billion and has apparently received offers for buyouts, Dealbook reports, "Galleon is now considering at least one serious bid to buy the firm and some of its assets."