Witness: Accused hedge fund manager lost on trade
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A government witness has testified that a high-flying hedge fund manager took a loss on a big trade in 2008 even though he had an inside tip.
Jurors heard Galleon Group founder Raj Rajaratnam (rah-juh-RUHT'-nuhm) on tape Tuesday at his insider trading trial. He told one of his employees that he "had a big bet" on a then-secret multibillion-dollar deal that was to be announced the next day.
He had learned about the deal from Anil Kumar, a financial consultant he is accused of paying for tips.
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Kumar says the deal went through just as the market was crashing in 2008. Afterward, Kumar says Rajaratnam told him "he lost quite a bit."
The 53-year-old Rajaratnam is charged in what prosecutors call the largest hedge fund insider trading case in history.