The arrest of hedge fund millionaire Raj Rajaratnam on charges that he and his $7 billion Galleon Group hedge fund profited from illegal insider trading will no doubt feed suspicion in some corners about the way hedge funds generate fat profits.
Why are there financiers who think that they — and they alone — can run businesses where nearly everyone else who has tried has failed? There is Guy Hands with EMI and Cerberus Capital Mangement with Chrysler, but Exhibit A has to be hedge fund manager Eddie Lampert’s nearly four-year adventure with Sears.
Ron Insana once was one of the better journalists/personalities on CNBC, but then he decided to go into the hedge fund business and failed miserably. Now Dealbreaker.com reports he’s teamed up with TheStreet.com to produce a product that let’s you trade along with the former cable anchor and “make more money in the markets.”