Galleon rivals look to profit as hedge fund sinks


As federal investigators expand their allegations of insider trading centered on tech hedge-fund giant the Galleon Group, rivals are already looking to take advantage of the firm's desperation. Galleon cofounder Raj Rajaratnam told the firm's employees that he was innocent and would fight all charges, according to The Wall Street Journal, but many investors won't stick around for a trial. Galleon is seeing withdrawal requests of $1.3 billion from a total of $3.7 billion under management, the Journal reports.

Some rival hedge-fund managers already appear to be aggressively courting Galleon clients. "Look, that money has to go somewhere," a senior hedge fund manager told The Business Insider blog. "So we're working to make sure we get a huge portion of it."