Sun, Nov 29, 2015
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


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. Other Voices: Hedge fund marketing and the selling cycle[more]

    By Bruce Frumerman. How long is the selling cycle now? That’s a question my financial communications and sales marketing consulting firm has been asked on a regular basis by hedge fund firm owners and sales people, ever since we opened the doors to our firm in 1987 pre-crash. Wa

  2. People - Solus Alternative Asset Management adds chief strategist from BTIG[more]

    From Daniel Greenhaus joined hedge fund manager Solus Alternative Asset Management as managing director and chief strategist. He will work closely with Chris Bondy, Solus’ chief economist, managing director and executive vice president, said Chris Pucillo, CEO and chief investmen

  3. Opalesque Roundtable: Seeding deal terms can be onerous for hedge funds[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: Executives from fund of funds firms, family offices, a placement agent, a private equity firm, and an accounting firm gathered in Connecticut last month for the

  4. Opalesque Roundtable: Family offices flock to co-investment[more]

    Bailey McCann, Opalesque New York: Co-investments have been a hot topic for pension funds in recent years, as they try to move away from high fees and improve transparency. But now, family offices are more readily getting into the mix and establishing in-house deal teams, according to the delega

  5. More institutional investors invest in CTAs compared to last year despite dissatisfaction with performance[more]

    Benedicte Gravrand, Opalesque Geneva: "Despite a strong start to 2015 for CTAs in Q1, commodity market conditions have made return generation difficult for fund managers over much of the rest of the year to date," says Preqin’s November