Seeking Alpha – The government’s case against Raj Rajaratnam, founder of hedge fund Galleon Group, on the charge of insider trading, alleges that the hedge fund manager’s primary competitive advantage for investors was a web of connections close to or inside technology companies feeding him illegal tips on future directions of the companies’ stock prices.
What’s shocking is how Rajaratnam is accused of having, over at least 10 years, cultivated a network of insiders feeding him nonpublic information about future earnings announcements from public companies like AMD (including its former CEO), IBM, Intel (INTC), and some of their most prestigious advisers like McKinsey & Co.
