Mon, Jul 24, 2017
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Barai Capital caught in insider trading scandal, fund was just starting to actively raise capital

Monday, January 31, 2011
Opalesque Industry Update – Two-year-old firm, Barai Capital was just starting to move to actively boost the $100m in assets the firm had from seeder Protégé Partners and other early investors, when involvement in the recent insider trading scandal unraveled the business. Reports by news outlets on Monday confirmed Barai Capital to be the unnamed firm raided during the November FBI sting operation, and investors confirmed that the fund was being unwound in an orderly fashion.

“We have generated a cumulative net return of over 13% in 2.5 years…The firm now manages just under $100m with a team of five professionals. We would like to now add to that capital in order to take advantage of the tremendous opportunities we are seeing right now in the technology space,” said Portfolio Manager and Principal Sam Barai, during the latest Opalesque New York Roundtable. Barai, who spoke at the Opalesque Roundtable only a few weeks before the raid on his offices, described himself as a “technology geek”. Prior to launching his own firm he worked with Ziff Brothers Investments before managing a successful equity long/short fund (focused on tech-telecom-media stocks) for Citigroup’s Tribeca Global Management prior to the financial crisis.

Prosecutors have not disclosed charges in the wrongdoing against Mr. Barai or his firm, but the WSJ reported that people familiar with the case identified Sam Barai as a co-conspirator. Reports published throughout the day on Monday say Barai received inside information on Marvell Technology and Nvidia from Ms. Jiau (Winifred Jiau, charged in December with conspiracy and securities fraud).

Ironically, during the Opalesque Roundtable, Barai discussed the investor wariness following major hedge fund frauds such as Madoff, that made raising assets for new funds more difficult than in years prior. “Investors have been more focused on investing with the largest hedge funds with well known prime brokers, auditors, and administrators. We have always worked with a well-established network of service providers, which should give potential investors more confidence in Barai Capital even if our assets are not in the billions of dollars,” said Barai.

For the full transcript of the Opalesque New York Roundtable see: Source

kb

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Already above average, Singapore high-networth investors add hedge funds and alternative investments[more]

    Komfie Manalo, Opalesque Asia: An above-average proportion of Singaporean HNW wealth is allocated to alternative investments - the majority of which is held in hedge funds, according to the latest research by ReportLinker. In its report entitled, Wealth in Singapore: HNW Investors 2017

  2. Launches - Crypto boom: 15 new hedge funds want in on 84,000% returns, Crypto madness is striking VCs as Union Square analyst leaves to start new fund[more]

    Crypto boom: 15 new hedge funds want in on 84,000% returns From Forbes.com: With 43 projects raising $1.2 billion in initial coin offerings since May 1, according to Nick Tomaino's The Control, and with stratospheric returns for so many ICOs -- 82,000% for Ethereum, 56,000% for IOTA, 44,

  3. FinTech - The machines are coming... Elon Musk's grim warning, Tezos' $232 million ICO may just be the beginning, A gentle introduction to Initial Coin Offerings (ICOs), Billion dollar tokens, ICOS & crazy market swings WTF is going on!?, How AI is changing the way we invest, How the tech revolution is bringing flip-flops and beanbags to Wall Street, A 'machine-learning' approach to venture capital[more]

    The machines are coming... Elon Musk's grim warning From Tenplay.com.au: Tesla chief Elon Musk has called on US Governors to take 'decisive' action to curtail "the greatest risk we face as a civilization": Artificial Intelligence, or AI. Speaking at a meeting of the National Governor Ass

  4. News Briefs – Sears inks $200 million credit line from CEO Eddie Lampert's hedge fund, shares jump 9%, Rwanda: Global hedge fund to increase investments[more]

    Sears inks $200 million credit line from CEO Eddie Lampert's hedge fund, shares jump 9% Sears Holdings has landed a fresh line of credit, valued at $200 million, from its CEO Eddie Lampert's hedge fund, the retailer said Monday. Sears' stock climbed about 9 percent higher Monda

  5. Despite current limits, robo-advisors will be preferred investment solution for retail, gain importance for affluent and high net worth[more]

    Matthias Knab, Opalesque: Flynt, a Swiss FinTech focusing on proprietary technology platform for private and institutional clients, has published a brief paper on "Investing in the world of robo-advice and passive instruments". As investors will become more reluctant to pay for investment advi