Nomura Hires Sherlund, Former Top-Ranked Analyst at Goldman

Nomura Holdings Inc. (8604) hired Richard Sherlund, a former Goldman Sachs Group Inc. (GS) software analyst and Galleon Group LLC money manager, as the New York-based head of research for U.S. technology companies.

Sherlund, 56, will join the U.S. unit of Japan’s biggest brokerage as a managing director, according to a statement from the Tokyo-based brokerage. He was most recently chief executive officer of New York-based Ketchem Creek Capital Management LP, which invests in technology companies, the statement said.

“Tech is one of the hottest areas right now,” Jeanne Branthover, a managing director at Boyden Global Executive Search in New York. “It’s an area of extreme growth and every single company is focused on it, so the people that do what he does are more in demand than ever.”

Nomura has expanded its workforce in the Americas to 2,300 from 1,800 since 2009 and said last year that it plans to offer research for 600 companies in the U.S. in a bid to boost revenue from the world’s biggest equity market. Nomura got 11 percent of revenue from the Americas in the fiscal year ended in March 2010, almost double the 5.7 percent share the year before, according to data compiled by Bloomberg.

Nomura hired Bank of America Corp. (BAC)’s Ciaran O’Kelly in July 2009 as head of equities for the Americas and Bank of America’s Michael Rietbrock as head of U.S. equity research in March 2010. Sherlund will report to Rietbrock.

Top Ranking

Sherlund, the top-ranked software analyst by Institutional Investor magazine from 1989 through 2005, left Goldman Sachs in 2007 after 25 years to become a manager of technology stocks at Galleon, which is now at the center of the largest crackdown on hedge-fund insider trading in U.S. history. He left Galleon in 2008, HFMWeek said that year. Sherlund declined to comment on his employment at Galleon, according to Jonathan Hodgkinson, a Nomura spokesman.

Ketchem Creek is closing, HFMWeek said last week, citing sources familiar with the company who it didn’t name.

Raj Rajaratnam, Galleon’s co-founder, was arrested for insider trading in 2009 and is on trial in Manhattan federal court. The Sri Lankan-born money manager is accused of making $45 million from tips leaked by corporate insiders and hedge fund traders. He says his trades were based on legitimate research and denies wrongdoing.

Bill Gates

Sherlund, the analyst assigned by Goldman to follow Microsoft when the investment bank managed the software maker initial public offering 25 years ago, enjoyed unique access to co-founder Bill Gates. Gates regularly invited Sherlund for one- on-one dinners during the analyst’s early years of coverage.

“Rick’s the axe on Microsoft,” money manager Philip Orlando said in an April 2000 interview. Orlando is now the New York-based chief equity market strategist at Federated Investors Inc., which manages $341.3 billion.

Sherlund spends summers prospecting for gold in Alaska, the Wall Street Journal reported in November 2007. The annual ritual takes him to Fairbanks, Alaska, and then on a three-hour drive on a gravel road to Ketchem Creek, where he and his father, stepmother, brother and nephews help dig for gold while his wife and sons relax at Nantucket, the Journal reported.

To contact the reporters on this story: Jeff Kearns in New York at jkearns3@bloomberg.net; Dina Bass in Seattle at dbass2@bloomberg.net

To contact the editor responsible for this story: Nick Baker at nbaker7@bloomberg.net

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