There’s a fairly common, somewhat underhanded practice in certain industries, in which one makes one’s wife or mother or other non-penis-having person the nominal owner of one’s business in order to win business earmarked for women-owned companies, when in fact said woman has nothing to do the actual management of said business, with the money going to the same old males that it always has in the past. This is such a good racket, apparently, that it has spread from the construction business to the hedge-fund world, where it fooled even Julian Robertson, who plunked $25 million down on Nehal Chopra’s Ratan Capital Management, $25 million that should probably just have gone straight to Brahman Capital, where Chopra’s husband worked.
While Gupta worked at Brahman, the New York firm prepared investment analysis that was exclusively meant for its employees and its clients. Gupta, 37, broke the rules by occasionally sharing the investment recommendations with Chopra, the Securities and Exchange Commission said in a Tuesday complaint….
At times, Gupta would email his wife with internal recommendations, going as far as to tell her how big or small her bets should be. In March 2010, Gupta advised Chopra that she increase her position in a particular security on the same day Brahman also raised its stake, according to the SEC. On one occasion, Gupta monitored the hedge fund’s entire portfolio while his wife was out of the country.