Thu, Oct 20, 2016
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. M&A - U.S. hedge fund HarbourVest is shock winner in the £1.1bn SVG Capital takeover saga, Hedge fund Parvus shows hand, toppling William Hill merger deal[more]

    U.S. hedge fund HarbourVest is shock winner in the £1.1bn SVG Capital takeover saga From The fierce battle to buy Britain's biggest private equity group has come to an unexpected conclusion, with the original bidder walking away with the prize. SVG Capital has agreed

  2. Marc Lasry: Energy is still a phenomenal opportunity[more]

    From Distressed debt specialist Marc Lasry said energy debt is still a "phenomenal opportunity" because investors can get "massively overpaid" for the risk they take on. There are "huge opportunities" in the energy sector especially in restructurings, the Avenue Capital Group CEO said Tues

  3. Opalesque Exclusive: Ex-SAC manager re-emerges with market neutral hedge fund[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: A manager re-emerged from the SAC battleground last year to launch his own hedge fund under the umbrella of New York-based investment firm Endicott Group.

  4. North America - Hedge-fund manager Kyle Bass says the U.S. is on track for stagflation, Billionaire hedge fund titans Dinan, Lasry on election, markets and best investment ideas[more]

    Hedge-fund manager Kyle Bass says the U.S. is on track for stagflation From Kyle Bass, founder of Hayman Capital Management, on Wednesday warned that the U.S. is headed toward so-called stagflation. Stagflation is typically described as persistently high inflation and hi

  5. Macro hedge funds up 3.3% in one week on Fed and Brexit pays off[more]

    Komfie Manalo, Opalesque Asia: Hedge funds were boosted by the strong performance of global macro funds, with the Lyxor Global Macro Index gaining 3.3% as of the week ending Oct. 11 (-1.7% YTD), Lyxor Asset Management reported. Their short on the p