Barai Capital Winds Down Funds After FBI Raid, Investor Says
Barai Capital Management LP, the New York-based hedge fund run by Samir Barai, is liquidating its funds after being raided by the Federal Bureau of Investigation as part of the government’s insider-trading probe, according to a memo from the firm that seeded the manager.
“BCM has informed us that they are cooperating fully with the government’s investigation. The firm also has informed its investors that it commenced an orderly wind down of the BCM funds," Protege Partners LP co-founders Jeff Tarrant and Ted Seides said in an e-mail sent today to investors, a copy of which was obtained by Bloomberg.
The FBI raid took place in November and was referenced in the criminal complaint against Winifred Jiau, a former consultant with Primary Global Research LLC in Mountain View, California. Jiau, 43, was arrested in December for allegedly selling information about Nvidia Corp. of Santa Clara, California and Hamilton, Bermuda-based Marvell Technology Group Ltd. to portfolio managers at three unidentified hedge funds through Primary Global. Jiau’s lawyer has said she intends to plead not guilty.
In the court document, the FBI said it received permission to seize and search computers used by a cooperating witness at ‘‘Hedge Fund A.”
Barai Capital is hedge fund A, according to a story in today’s Wall Street Journal. Barai, 39, who previously worked at Citigroup Inc. before starting his own firm, hasn’t been charged with any wrongdoing.
Scott Tagliarino, a spokesman for Protege, declined comment. Barai couldn’t be reached for comment.
To contact the reporter on this story: Katherine Burton in New York at kburton@bloomberg.net.
To contact the editor responsible for this story: Christian Baumgaertel at cbaumgaertel@bloomberg.net.
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