Rajarengan "Rengan" Rajaratnam (born 1971) is a hedge fund manager. He is the founder of

hedge fund A hedge fund is a pooled investment fund that trades in relatively liquid assets and is able to make extensive use of more complex trading, portfolio-construction, and risk management techniques in an attempt to improve performance, such as sho ...

Sedna Capital and the younger brother of convicted hedge fund founder

Raj Rajaratnam Rajakumaran Rajaratnam (born June 15, 1957) is a Sri Lankan-American former hedge fund manager and founder of the Galleon Group, a New York-based hedge fund management firm. On October 16, 2009, he was arrested by the FBI for insider trading ...

. He was arrested for

securities fraud Securities fraud, also known as stock fraud and investment fraud, is a deceptive practice in the stock or commodities markets that induces investors to make purchase or sale decisions on the basis of false information, frequently resulting in los ...

in March 2013. His trial in

New York City New York, often called New York City or NYC, is the List of United States cities by population, most populous city in the United States. With a 2020 population of 8,804,190 distributed over , New York City is also the L ...

began in June, 2014 but he was found not guilty by the jury in July 2014.

Early life and education

Rajaratnam was born in

Sri Lanka Sri Lanka (, ; si, ශ්‍රී ලංකා, Śrī Laṅkā, translit-std=ISO (); ta, இலங்கை, Ilaṅkai, translit-std=ISO ()), formerly known as Ceylon and officially the Democratic Socialist Republic of Sri Lanka, is an ...

. Rajaratnam has an older brother, Raj, and a younger brother, Ragakanthan. He attended the

University of Pennsylvania The University of Pennsylvania (also known as Penn or UPenn) is a private research university in Philadelphia. It is the fourth-oldest institution of higher education in the United States and is ranked among the highest-regarded universitie ...

and later graduated

Stanford Graduate School of Business The Stanford Graduate School of Business (also known as Stanford GSB) is the graduate business school of Stanford University, a private research university in Stanford, California. For several years it has been the most selective business schoo ...

with an

MBA A Master of Business Administration (MBA; also Master's in Business Administration) is a postgraduate degree focused on business administration. The core courses in an MBA program cover various areas of business administration such as accounti ...

in 1998.

Career

After graduating Stanford, Rajaratnam worked at

Morgan Stanley Morgan Stanley is an American multinational investment management and financial services company headquartered at 1585 Broadway in Midtown Manhattan, New York City. With offices in more than 41 countries and more than 75,000 employees, the fir ...

and for a year at SAC Capital Advisors, founded by Steven A. Cohen. He left to run his own hedge fund, Sedna Capital, before joining the

Galleon Group The Galleon Group was one of the largest hedge fund management firms in the world, managing over $7 billion, before closing in October 2009. The firm was the center of a 2009 insider trading scandal which subsequently led to its fall. The firm wa ...

Insider trading allegations

Rajaratnam was arrested in 2013 on

insider trading Insider trading is the trading of a public company's stock or other securities (such as bonds or stock options) based on material, nonpublic information about the company. In various countries, some kinds of trading based on insider information ...

charges. The

insider trading investigation began with the investigation of Sedna Capital in 2003-2004. Prosecutors alleged that Rengan Rajaratnam regularly shared confidential information with his brother, Raj Rajaratnam but he was cleared by a jury in July 2014. During Raj Rajaratnam's trial, the jury heard Rengan Rajaratnam call former classmate and McKinsey junior partner David Palecek "a little dirty" and "boasted that he alecek'finally spilled his beans' by sharing corporate secrets." According to ''Bloomberg'', when asked about AMD, Palecek allegedly said "Buy it, buy as much as you can as soon as you can.""Raj Rajaratnam’s Brother Charged With Insider Trading"
Bloomberg. Rengan Rajaratnam's own trial began before U.S. District Court Judge Naomi Reice Buchwald in June 2014. He was "accused of trading on confidential information related to wireless broadband company

Clearwire Clearwire Corporation (stylized as clearw˙re) was a telecommunications operator which provided mobile and fixed wireless broadband communications services to retail and wholesale customers in the United States, Belgium, Ireland and Spain. Clearw ...

Corp. and chip maker

Advanced Micro Devices Advanced Micro Devices, Inc. (AMD) is an American multinational semiconductor company based in Santa Clara, California, that develops computer processors and related technologies for business and consumer markets. While it initially manufact ...

Inc. in 2008" while at Galleon. He was said to have acted on information from his brother and profits from the trades were alleged to be about $800,000. He was found not guilty in July 2014, after one day of jury deliberation on the one of the original six counts of the indictment for which he was tried.Patel, Sital S.
"Rengan Rajaratnam found not guilty of insider trading: report"
''

MarketWatch MarketWatch is a website that provides financial information, business news, analysis, and stock market data. Along with ''The Wall Street Journal'' and ''Barron's'', it is a subsidiary of Dow Jones & Company, a property of News Corp. Histor ...

'', July 8, 2014. Retrieved 2014-07-08.

References

External links

Third McKinsey partner named in insider trading trial

Jury Hears Dozen Taped Calls at Galleon Trial
{{DEFAULTSORT:Rajaratnam, Rengan 1971 births American hedge fund managers Living people