Witness: Accused hedge fund manager lost on trade

NEW YORK – A government witness has testified that a high-flying hedge fund manager took a loss on a big trade in 2008 even though he had an inside tip.

Jurors heard Galleon Group founder Raj Rajaratnam (rah-juh-RUHT'-nuhm) on tape Tuesday at his insider trading trial. He told one of his employees that he "had a big bet" on a then-secret multibillion-dollar deal that was to be announced the next day.

He had learned about the deal from Anil Kumar, a financial consultant he is accused of paying for tips.

Kumar says the deal went through just as the market was crashing in 2008. Afterward, Kumar says Rajaratnam told him "he lost quite a bit."

The 53-year-old Rajaratnam is charged in what prosecutors call the largest hedge fund insider trading case in history.