Mon, Apr 23, 2018
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. Investing - Sequoia takes Facebook stake as shares slide in data controversy, $1.4b hedge fund sees intact fundamentals for Facebook, Jim Cramer reveals some 'suggested hedge fund trades' amid the Trump tariffs[more]

    Sequoia takes Facebook stake as shares slide in data controversy From Bloomberg.com: The $4.2 billion Sequoia Fund bought a small position in Facebook Inc. as the stock slid late in the first quarter, investment manager Ruane, Cunniff & Goldfarb told clients. "The recent controversy enab

  2. Activist Investors - Blue Sky-owned Wild Breads faces uncertain future[more]

    From AFR.com: A Blue Sky private equity investment in artisan-style baker Wild Breads enjoyed multiple valuation upgrades despite losing millions and breaching its lending covenants, accounts lodged with the regulator last week show. Wild Breads lost $2.4 million in 2017, but Blue Sky ascribed a hig

  3. Opalesque Exclusive: Barnegat to close hedge fund to outside investors on weak opportunities[more]

    Komfie Manalo, Opalesque Asia: Bob Treue's Barnegat Fund Management said it is closing its $666m fixed income relative value hedge fund to outside investors. "The negative side to gains in Fixed Income Arbitrage is that unless we find new opportunit

  4. Investing - Hedge fund makes a big bet on malls, British hedge fund manager Odey short UK government bonds on QE bet[more]

    Hedge fund makes a big bet on malls From Barrons.com: The dominant narrative on American shopping malls is that they're dead. Crushed by Amazon.com, many brick-and-mortar retail stores are destined for bankruptcy. And where is the most retail, clustered all together? Malls. From a

  5. Performance - Hedge funds suffer first back-to-back loss in two years, Netflix performance burns hedge fund short sellers, Macro hedge fund up 14.5% in first quarter sees dollar falling, Renaissance Technologies rebounds across hedge funds in March[more]

    Hedge funds suffer first back-to-back loss in two years From Bloomberg.com: Hedge Fund returns sank for a second straight month in March, the first back-to-back loss since the first two months of 2016, as trade wars, tech-sector woes and a Fed rate hike dragged down the S&P 500 from its