Story of Raj Rajaratnam

Background and Career

He was born in Sri Lanka, attended S. Thomas' Preparatory School, Kollupitiya^[4], then moved to England to complete his schooling, and studied engineering at theUniversity of Sussex in England. Rajaratnam earned anM.B.A. from Wharton School of the University of Pennsylvania in 1983. He is married with three children. Rajaratnam, a Tamil self-made billionaire hedge fund manager, is the 236th richest American according toForbes magazine (2009).^[5] with an estimated net worth of $1.8 billion. He was ranked 262nd richest American in 2008^[6] and as of early 2009, is the richest Sri Lankan in the world. As of 2009, his $1.2 billion Diversified Fund has returned 22.3% according to an investor letter

Rajaratnam started his career as a lending officer at the Chase Manhattan Bank where he made loans to high-tech companies. He joined the investment banking boutique Needham & Co. as an analyst in 1985, where his focus was on the electronics industry. He became the head of research in 1987 and the president in 1991, at the age of 34 . At the company’s behest, he started a hedge fund, Needham Emerging Growth Partnership in March 1992, which he later bought and renamed ‘Galleon’.

Rajaratnam has been featured among the elite US money managers in a book called The New Investment Superstars: 13 Great Investors and their Strategies for Superior Returns by Lois Peltz. Initially invested in technology stocks and healthcare companies, he says his best ideas come from frequent visits with companies and conversations with executives who invest in his fund. His hedge fund is currently valued at $3.7 billion, down from its peak of $7 billion in 2008. After his arrest, Galleon has received requests from investors for withdrawal of $1.3 billion

Raj Rajaratnam was a major donor to the Obama for President campaign.

Arrest for insider trading

On Friday October 16, 2009, Raj Rajaratnam was arrested by the FBI and accused of conspiring with others to trade based on insider information about several publicly traded companies, including Google Inc. U.S. Attorney Preet Bharara, putting total profits in the scheme at $20.6 million, told a news conference it was the largest hedge fund case ever in insider information and then caused the Galleon Technology Funds to execute trades that earned a profit of more than $12.7 million between January 2006 and July 2007.

Rajaratnam allegedly profited from information they got from Robert Moffat, an IBM senior vice president who allegedly provided data about a possible IBM merger with Sun Microsystems that led to a $1 million windfall for Rajaratnam's New Castle funds. Rajaratnam has also been accused of conspiring with Intel Capitaltreasury department managing director Rajiv Goel, and Anil Kumar, a director of McKinsey & Co. The alleged offenses took place over three years starting in January 2006.

The Sri Lankan stock market has fallen sharply after his arrest on insider trading charges. The Colombo Stock Exchange fell 3.9% before recovering to close down 1.6% on Monday, the biggest fall since June 4.

US prosecutors claim that Mr Rajaratnam and five other investors secured inside information regarding firms including Google, AMD, and Hilton Hotels.

The others charged in the case include Rajiv Goel, a director of strategic investments at Intel Capital; and Robert Moffat, senior vice president in the systems and technology division of computer group IBM.

Kosala Dissanayake

Advisor to Stock exchange

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Raj Rajaratnam, Galleon Group Founder Charged in Insider Trading

Raj Rajaratnam, the Galleon Group founder has been charged along with five others ttoday for their part in a $20 million insider-trading case. Raj Rajaratnam himself has been charged with four counts of conspiracy and eight of securities fraud.

Raj is the founder of the Galleon Group, worth $7 billion, but he is also the portfolio manager for the Galleon Technology Funds, but he is charged with Rajiv Goel, Anil Kumar, Danielle Chiesi, Mark Kurland and Robert Moffat.

Raj Rajaratnam Insider dealing

Federal authorities have uncovered what they say is the largest case of insider trading ever at a hedge fund – netting an alleged $20 million in illegal profits.

The case centers around billionaire Raj Rajaratnam, a partner at hedge fund Galleon Group. The Federal Bureau of Investigation arrested him on Friday in New York along with five others tied to the case.

It’s the latest hit to the reputation of Wall Street, which has also been shaken over the past year by the Bernard Madoff scandal, other Ponzi schemes, and the whirlwinds of controversy surrounding thebroader crisis in America’s banking system.

Kosala.

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Colombo stock exchange.

Market Capitalization top a record Rs. 1 trillion in history

(06 Oct 09)Market Capitalization reached Rs. 1 trillion (1000 billion) today, for the first time in the history of the Colombo Stock Exchange. The benchmark index rose 1.4 percent in the first half hour of trading to a new record high.

Kosala

Investment advisor to Colombo stock market,

Colombo.

0094777696243

New record in Sri lanka Stock market.

Oct 06, 2009 (LBO) - Sri Lankan stock values topped the 1000 billion rupee mark (8.76 billion US dollars) Tuesday, while the benchmark index rose 1.4 percent in the first half hour of trading to a new record high.

Stock values started the year at 448.5 billion rupees with the end of a 30-year war with Tamil Tiger separatists in sight.

The Colombo is now the world's second best performing market up 109.88 percent from the beginning of the year, just behind the Lima General Index in Peru, which is up 110.73 percent up so far this year, according to Bloomberg Newswires data.

In third place is Russian RTS Index, up 94.21 percent, with Ukraine in fourth place, up 92.46 percent.

Bombay's Sensex is up 75.9 percent.

Financial markets have been climbing on the back of monetary loosening after a severe battering in 2008.

US loosening has also increased the risk appetite of hedge funds, which have renewed purchases of Sri Lankan Treasuries, after credibility in a dollar peg was restored following a float of the currency.

Stocks are now climbing with 12-month inflation below 1.0 percent, but with excess liquidity in interbank markets and lower than usual interest rates.

There are so many possibility to have another record in next week since the investments are still inject in to the market.

In global concern with the trends, the Sri Lankan Stock market could be the best Investment option in all time in history of Stock market. Increase in investor credibility, high gains and secure economic environment and political seen making the Investment solid than other investment options.

Kosala Dissanayake

Investment Advisor to Stock market

Colombo stock exchange.

0094777696243

Stock market boost

Sri Lankan stock market capitalization climbed to a record yesterday as the end of the 26-year civil war boosted stocks, making the island’s benchmark index the best performer in Asia this year.

The South Asian country’s Colombo All-Share Index has gained 96 percent this year as the army defeated the Liberation Tamil Tigers of Eelam in May. The Colombo All-Share Index was the region’s third-worst performer in the past two years as record spending on defense strained government finances, and the country sought an International Monetary Fund loan.

The market value of the 238 stocks that constitute the All- Share Index climbed to 942.6 billion rupees ($8.2 billion) yesterday, the exchange said in a release posted on its Web site. That surpassed the earlier high set on Feb. 13, 2007, the bourse said.

Sri Lankan stocks may offer better returns as the end of civil war frees up government spending for investments in infrastructure and agriculture, investor Jim Rogers said last month. The end of almost three decades of civil war in May and a $2.6 billion loan from the International Monetary Fund helped restore investor confidence and attracted foreign flows, the central bank said July 23.

Standard & Poor’s raised its outlook on the island’s credit rating on Aug. 25 to stable from negative, citing improved foreign-exchange reserves.

The nation’s central bank raised its 2009 growth forecast to as much as 4.5 percent in July from an earlier estimate of 2.5 percent after the separatists’ defeat. Sri Lanka plans to raise $500 million from overseas investors to help rebuild the nation, central bank Governor Nivard Cabraal said in an interview on July 31.

Kosala

Investment advisor to Stock exchange.

0094777696243