Good Luck Charms The Engine That Drove Galleon Group?

Posted by Bess Levin, Oct 19, 2009, 11:25am

Outsiders probably think in-depth research and a top notch ability to get information first was the “edge” that Galleon “pressured” traders and analysts to go after in their pursuit of big returns but based on the outbursts of one of the firm’s top employees? Kinda sounds like the fund was also keenly aware of the importance of rubbing rabbit feet and finding four-leaf clovers before executing trades, as well as the perils of allowing black cats to run amuck on the floor.

According to the Journal senior trader Leon Shaulov (previously employed with Sagamore Hill Capital and Goldman Sachs), and not Rajaratnam, was the guy you didn’t want to cross if you came into the office without the good stuff. Shaulov would verbally abuse those who couldn’t get enough material non-public information to make a buck, which seems standard. Who doesn’t do that? What really got Leo’s goat, however, apparently had nothing to do with people slacking on fact-finding missions. What set Shaulov off was jerk-offs who brought (actual) curses on the House of Galleon.

A senior trader, Leon Shaulov, who wasn’t named in any federal charges, sometimes berated traders or analysts who couldn’t uncover enough information that could move stocks, say several current and former employees. They add that Mr. Shaulov also would sometimes shout with joy when stocks moved the right way. Nearby, Mr. Rajaratnam would listen to the commotion through the glass door to his office. Through Galleon, Mr. Shaulov declined to comment.

People familiar with the matter say one of Mr. Shaulov’s regular targets was Gary Rosenbach, who helped start Galleon with Mr. Rajaratnam. One trader says Mr. Shaulov, in front of the rest of the staff, once turned on Mr. Rosenbach, screaming, “You’re a disease, you’re a jinx.”

Which is interesting because if you want to talk jinxes or sources of bad luck? How about we talk about the fact that Mr. Shaulov probably brought the mother of all jinxes on Galleon when he got named to this list.

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Tags: assholes, Galleon Group, Kevin you're such a disease, Leon Shaulov, magic, Raj Rajaratnam, Trader Monthly, voo-doo

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