One of my research colleagues ( a Phd in Math) wanted to get in to industry. However her desire came at a rather disturbing economic time( 2008 ) . She interviewed at various fund houses but the job situation looked grim. However she managed to get 2 offers. One from her home land , a plum treasury related role and other a job at Galleon hedge fund, NYC. She joined Galleon.The job responsibility at Galleon was exciting as it was high frequency options trading strategies and she was kicked about it.  I felt good about the whole stuff as she got in to a role which she wanted to do . The fact she lived in my neighborhood at NJ made me generally enquire about her work etc as she had moved from a hard core research oriented role to a role which involved taking daily trading calls. She seemed happy doing intra-day trading.

However today, I feel very sad to know that a fund which is very well known in NYC and looked upon as a great fund , is actually a FRAUD. I am sure my former research colleague is equally disturbed with the events surrounding Galleon. If one scans through the attached document, a 34 page accusation, it has all the drama for a hollywood story. “Inside information to make money”!!

I just don’t understand…Have the markets become so efficient that you can’t trade on public knowledge, your own fundamental/technical/quant analysis ?? Or is it the same old story of GREED taking over the center stage?

The fact that it has a few indians involved , makes it even more a sad event.

Galleon Fund Notice DocumenT-34 pages with all the gory details

Media Link : NYT: Hedge Fund exec charged