Galleon co-founder Raj Rajaratnam sent this letter to clients on Wednesday:
Dear Galleon Employees, Clients and Friends,

I have decided that it is now in the best interest of our investors and employees to conduct an orderly wind down of Galleon’s funds while we explore various alternatives for our business. At this important time, I want to reassure investors of the liquidity of our funds and assure Galleon employees that we are seeking the best way to keep together what I believe is the best long / short equity team in the business.

As many of you know, we have built our business on the fundamental belief in rigorous investment analysis combined with active trading around core positions. We have encouraged and invited our investors to attend our daily research morning meetings. Many of you have done so and got a first hand look at our process. This research process is the core of our investment and trading strategy.

The privilege of managing investors’ capital is a responsibility that I have always taken very seriously.  I want to reiterate that I am innocent of all charges and will defend myself against these accusations with the same intensity and focus I have brought to managing our investors’ capital.

For those who have been my partners and supporters over the last 17 years, I sincerely thank you. I also want to thank you for the innumerable expressions of support I have received from you over the past few days.

Sincerely

Raj Rajaratnam

Expect another dip in the Galleon index, then.

Related links:
Galleon `selling down and moving to cash’ – FT
Rajaratnam alert: Be afraid, be very afraid? – FT Alphaville
“Put ya money on Galleon” – Rajaratnam’s rap sheet – FT Alphaville

This entry was posted by Miles Johnson on Wednesday, October 21st, 2009 at 14:34 and is filed under Hedge funds, People. Tagged with Galleon, Raj rajaratnam. Edit this entry.