The goal of this week’s post is to explore the factors driving Galleon Technology fund’s performance a bit deeper. The fund was widely known for its high turnover, rapid-fire trading and extensive use of options to leverage short-term bets. Therefore, it seems unlikely that this quintessential hedge fund could resemble a typical technology sector mutual fund. But, as we’ve already learned from our previous analysis of Renaissance RIEF, such massive trading may inadvertently result in performance that can be explained by a handful of directional bets.
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Michael Markov Hedge Funds, Main Galleon fund, galleon insider trading, hedge fund analysis, returns-based style analysis, style analysis
The pattern in alpha is as important as its magnitude…
Daniel Li
Michael Markov
In the recent insider trading scandal involving the founder of Galleon Group, Raj Rajaratnam, the government used wiretaps to secretly record his phone conversations and those of his alleged accomplices. In the complaint, government prosecutors present an insider trading case against Rajaratnam and several other executives for illegally profiting from trading stocks and options of Hilton, Google, Akamai and others.
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Michael Markov Hedge Funds, Main Galleon fund, hedge fund analysis, insider trading, returns-based style analysis, style analysis
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