WSJ – It was the big news hedge funds had been waiting for. And it conveniently broke when some 1,700 people in the business happened to be gathered here to size up what it meant for their industry.
“It’s bad for the business,” said Donald Lucardi, a director at a Citigroup Inc. unit that sells the bank’s hedge funds to investors. Mr. Lucardi was one of many who learned around breakfast time Wednesday at a hedge-fund industry conference, known as SALT, that Galleon Group founder Raj Rajaratnam had been found guilty on insider-trading allegations after a weeks-long trial.
“What happens if you see a domino effect on long-short equity funds?” one person said, elaborating that the outcome could lead some hedge-fund investors to avoid these types of funds altogether.
