Below is a transcript of the conversation that the Raj Rajaratnam prosecution seems to be offering as intent to trade on insider information “48 hours before” the deal from Anil Kumar.
The prosecution needs to prove that Raj traded on insider information to win their case against the billionaire hedge fund manager, who is on trial in Manhattan for insider trading.
In this case, Raj seems to describe his ability to get information from Anil Kumar on the timing an injection of cash coming from Abu Dhabi into AMD.
The “intent,” is something and all, but the most interesting part is simply to see how the head of a multi billion hedge fund talks to one of his employees about the insane markets in the fall of 2008 and their books.
A bit of context: Raj had allegedly told Kumar that the markets were all crap in 2008 and the only places he could make money were “events,” like company mergers or big deals.
First Raj gets a general overview of the market from his employee Ian Horowitz, then Horowitz reviews Galleon’s performance, and then Raj delves into getting advance info on AMD and buying “3 to 5 million.”
(He told Danielle Chiesi that he ended up going long 25 million shares.)
The following call took place on September 12, 2008. Raj allegedly found out that AMD would be announcing its Abu Dhabi injected on October 7th nearly a week early, on September 30 2008.