As you’re aware, ten more people are expected to be charged with insider trading this week. Some of them may be connected to the Rajaratnam case. Others will be accused of dipping their wick elsewhere. The authorities refuse to give any hints as to who could potentially be perp-walking, forcing us to wildly speculate, since we can’t take the suspense! To that end, we’re just going to throw some stuff out there. Maybe it means something, maybe not! It’s all relative.
One of the cooperating witnesses in the Galleon case is Choo Beng Lee, who started Spherix Capital in March 2008, after working at Stratix Asset Management, a tech fund. Stratix was formed by SAC veterans Ian Goodman and Richard Grodin, and closed in December 2007, supposedly due to personal issues between the founders. Grodin then started Quadrum Capital, another tech-focused fund, around March 2008. We were told yesterday that Quadrum “abruptly” closed at some point last week. And apparently they really don’t want to talk about it, because the firm’s number is now out of service.
Update, 10/24: The WSJ has confirmed all of the above, and notes that Grodin had been subpoenaed for his trading records.
Posted by guest , Oct 22, 2009 12:13PM
It's not me biotches, and stop talking about my Zamboni.
-SC
Posted by guest , Oct 22, 2009 12:18PM
bess levin i'm going to eat you alive.
-you know who
Posted by guest , Oct 22, 2009 12:22PM
Quadrum doesn't exist on Bloomberg and Richard Grodin is still listed at Stratix. Must have been quite the shop at Quadrum.
Posted by guest , Oct 22, 2009 12:26PM
@3
We ran it out of my mom's basement, using Scottrade as our prime broker.
-Quadrum Quant
Posted by guest , Oct 22, 2009 12:28PM
@3 stratix closed in 2007. tell the fucking mayor to update his system.
http://www.finalternatives.com/node/3084
and Quadrum existed, until recently...
Posted by guest , Oct 22, 2009 12:29PM
Bess, a word to the wise-- you don't want to dig further into this one.
-a friend in Stamford
Posted by guest , Oct 22, 2009 12:31PM
So it WAS the Trannies......with the candlestick....in the library!!!!
I knew It!!!
-- Cluso
Posted by guest , Oct 22, 2009 12:31PM
@5 I'll update things when I damn well please.
Dictator For Life MB
Posted by guest , Oct 22, 2009 12:33PM
@7 I think Rich and Ian were out of 72 Cummings before Tranny-Gate.
Posted by Legacy Lehman Quant , Oct 22, 2009 12:39PM
SAC knows all.
True Story: AQR is the special project arm of SAC. The physical distance between the two firms was specifically calculated so as not to not affect the tilt and rotation of earth.
Why do you think both firms share 3 letter acronyms, eh, eh?
-Legacy Lehman Quant
Posted by guest , Oct 22, 2009 12:40PM
You can take the Israelis out of Brooklyn , but can't take the Brooklyn of the Israelis
Posted by guest , Oct 22, 2009 12:43PM
@10 may your next attempt at hilarity be successful. godspeed.
Posted by Legacy Lehman Quant , Oct 22, 2009 12:50PM
@12 shut your dirty whore mouth!
Posted by guest , Oct 22, 2009 12:52PM
12,
Get a sense of humor, you dolt.
-Not 10
Posted by highlyconfident , Oct 22, 2009 12:53PM
Raj and Lil Wayne are going to tear up the jailhouse mixtape scene.
Posted by guest , Oct 22, 2009 12:55PM
Of all the desks I have visited over the years, Galleon and Stratix seemed the most unnecessarily tense/high strung.
Ian looked liek he had been up for days every time I met him. Nice guy though.
Vendor Boy
(To the Rescue!)
Posted by guest , Oct 22, 2009 1:11PM
One buy side fuckstick who chewed me out unnecessarily down - 38 to go.
Sell Side Desk Jockey
Posted by guest , Oct 22, 2009 1:11PM
The difference b/w Galleon and SAC is Galleon used inside information from inside companies. SAC uses inside information from inside Wall St. They get tipped off on all sorts of stuff by the sell side itself, since they are such big commission payers. Stevie is too smart to go around messing with amateur fraudsters at IR firms, McKinsey, and the like.
Posted by guest , Oct 22, 2009 1:33PM
The difference b/w Galleon and SAC is Galleon used inside information from inside companies. SAC uses inside information from inside Wall St. They get tipped off on all sorts of stuff by the sell side itself, since they are such big commission payers. Stevie is too smart to go around messing with amateur fraudsters at IR firms, McKinsey, and the like.
Posted by guest , Oct 22, 2009 1:34PM
@18/19 what's the difference b/t Galleon and SAC?
Posted by guest , Oct 22, 2009 1:35PM
@15 - Chopped and "Screwed"!!!
Posted by Google Cache , Oct 22, 2009 1:49PM
http://74.125.155.132/search?q=cache:4IdMpyyCE7MJ:www.facebook.com/people/Richard-J-Johnson/604308953+site:facebook.com+604308953
Google cache of Richard J. Johnson's deleted facebook page.
Posted by guest , Oct 22, 2009 2:01PM
@15, bitter much?
Posted by Google Cache , Oct 22, 2009 2:02PM
http://74.125.155.132/search?q=cache:Sh6PeJuSutMJ:www.linkedin.com/pub/richard-j-johnson/5/b89/75+site:linkedin.com+Richard+J.+Johnson
Google Cache of Linked-in page. Get it before the cache expires, as the page has been wiped to read "Hand Model, Furniture Industry"
Posted by guest , Oct 22, 2009 2:03PM
@22 the richard referred to in the post is richard grodin.
Posted by guest , Oct 22, 2009 2:22PM
@20, a deep fryer, a shark in formaldehyde, some smokin' trannies and about $16 bio?
Posted by guest , Oct 22, 2009 2:24PM
@24 awesome. he also spelled the name of the fucking fund incorrectly.
Posted by guest , Oct 22, 2009 2:26PM
@24 how can that be real? is he drunk and updating his linkedin profile? under info about Stratix he wrote "we really rocked it."
Posted by Galleon and Grodin , Oct 22, 2009 2:37PM
Galleon was a sponsor of the Grodin's pet charity for Lyme disease. The more constant contributor was Goldman (sacks of coin).
http://www.turnthecorner.org/2005sponsors.htm
Posted by guest , Oct 22, 2009 2:55PM
@20, a deep fryer, a shark in formaldehyde, some smokin' trannies and about $16 bio?
Posted by highlyconfident , Oct 22, 2009 3:02PM
@23 very bitter. My rap career hasn't taken off because those Galleon boys have been hoggin all the top spots on the charts.
Posted by guest , Oct 22, 2009 3:17PM
@17
You're sellside, get used to it or go work with that Chiang fellow at McDonalds.
Posted by guest , Oct 22, 2009 3:23PM
Is this our girl? If so, does Trivium have something to worry about?
http://www.linkedin.com/pub/roomy-khan/2/238/b52
Posted by guest , Oct 22, 2009 3:30PM
@17
You're sellside, get used to it or go work with that Chiang fellow at McDonalds.
Posted by guest , Oct 22, 2009 3:30PM
the detective trail reads like an STD transmission flowchart.
Posted by guest , Oct 22, 2009 3:41PM
@35 what?
Posted by guest , Oct 22, 2009 3:43PM
This is why we need our H1B1 visa system, to keep the skilled workers in this country rather than our competitors.
Posted by guest , Oct 22, 2009 3:46PM
@37 what the fuck does that have to do with anything? the guys referenced above are white males. insider trading knows no color.
Posted by guest , Oct 24, 2009 11:18AM
holy shit bess called this thing.
http://online.wsj.com/article/SB125632433920204407.html
Posted by Teri , Oct 24, 2009 12:38PM
Bess did an excellent job of souring and reporting there were problems with Grodin's firm and his ties to SAC capital. It looks like Susan Pulliam at the WSJ saw Dealbreaker's story and figured it's worth checking out. So I find it very disappointing that that the WSJ doesn't have the editorial ethics to report that Dealbreaker was first to report news that Grodin had suddenly closed his fund this week. Don't you?
Posted by guest , Oct 24, 2009 1:14PM
it took the journal 2 days to copy this story? nice.
Posted by JT , Oct 24, 2009 1:33PM
I think if any Dealbreaker readers also have a WSJ password to comment they should speak out on WSJ's story and remind readers that Bess was first to this story. We need to hold them accountable for consistantly copying or out right stealing DB's hard work.
Posted by guest , Oct 24, 2009 9:54PM
"Probe Widening .. Ties to a Witness."
Bess, you're right: WSJ has become a straight-up smut factory.
@42/JT, someone did,
http://online.wsj.com/article/SB125632433920204407.html#articleTabs=comments#comment576416