As reported yesterday, a source close to Sanjay Santhanam, Galleon’s head of risk management, told Dealbreaker that Santhanam recently expressed fears the firm “could be closed by Friday,” due to a massive amount of redemptions. A representative of the fund, however, takes issue with the potential expiration date offered by San-San, pointing out that, technically, the death would be much more slower and painful, and take us through the New Year.
Teri Buhl
Posts by Teri Buhl
Investors Pulling Money From Galleon Tech Fund, Galleon Risk Management Head: “We Could Be Closed By Friday”
By Teri BuhlThe Galleon Group said Friday that it “continues to operate and is highly liquid” but one of firm’s top lieutenants is admitting he doesn’t think the shop will last long.
The Galleon Group put out an (awesome) rap about itself a few years ago but apparently its accused co-founder Raj Rajaratnam’s tastes swing a bit more country. One Greenwich neighbor (the hedge fund manager maintains residences at Sutton Place in New York and at 577 Round Hill Road in Connecticut) tells Dealbreaker that Raj spent millions to have Kenny Rogers perform at his home.
Who is “CW,” the FBI’s confidential witness? Or should we be asking where is Galleon’s CEO and co-founder Gary Rosenbach in these charges? Rosenbach co-founded Galleon in 1997 and was listed as a co-portfolio manager in the main Galleon International fund.
The battle at Bonita Bay Club, an exclusive luxury community on Florida’s west coast, is turning into an all out war.
Yesterday a Wall Street Journal article highlighted a tale of dysfunctional management by David Lucas, CEO of Bonita Bay Group, the club’s management company. As such, homeowners and golf club members have attempted a coup to try to save their club assets from disarray and possible loss of their entire investment. But Dealbreaker has learned that according to club members involved in the negotiations, the Bonita Bay Turnover Committee also voted to pursue KeyBank as an accomplice to defrauding investors just this past Wednesday.
The departure of Randy White from David Ganek’s Level Global Investors had insiders buzzing this morning with wishful thoughts that this art lovin ex-SAC super trader’s fund is in trouble. Not so!
Dealbreaker caught up with the firm and learned team Ganek (which runs a long/short equity fund) is actually thriving. After only ending 2008 down 6 percent Level Global is now cruising in positive territory up 8 percent ytd. And their AUM which was $2.3 billion in beginning of 2008 is now $4bn.
If you think hedge fund investors are pissed about subpar returns, gated redemptions and high fees, wait until they hear what some of their managers are paying in rent. Despite the sputtering economic recovery, some Greenwich-based hedge funds continue to pay over $100 per square foot for space at the best location in town, One Hundred West Putnam. One firm in particular is paying over $600,000 a month, while another spent over $10 million on renovations and never moved in.
Who benefits most one might ask? Greenwich-based Antares Investment Partners, run by partners Joe Beninati, 45, and Jim Cabrera, 46. The firm and its founders have been the subject of a three part series on its torrid rise and fall in the Greenwich Time last week.
Dawson-Herman Capital Management is shutting down its once high flying Southport Millennium hedge fund. Word from inside is that friction is mounting between co-founders John Dawson and Russell Herman over last year’s performance, and traders have flooded the street with resumes in the last few days. It’s unclear at this time if John or Russell (AKA “Russ”) will stay with the firm. In its heyday Southport Millennium logged an AUM of over one billion but what’s currently left in the coffers is unknown.
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