Millennium Partners Will No Longer Use Expert Networks

By Industries FOXBusiness

As a jury in downtown Manhattan deliberates the fate of former Galleon founder Raj Rajaratnam, accused of insider trading as part of the government’s massive crackdown on the hedge fund industry, FOX Business Network has learned that one of the biggest hedge funds, Millennium Partners, is no longer using expert networks on the research and analysis side of its business.

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Millennium Partners and many other hedge funds are wary of using expert networks now, fearing even a remote connection to insider trading. A source close to the fund said Millennium may reverse course depending on future developments. Expert networks -- which provide sophisticated investors with detailed information about companies -- have been the focus of a wide-ranging federal probe into whether people at these outfits provide insider information to hedge funds.

A spokesman for Millennium would not deny that it's no longer using expert networks to FOX Business Network. It should be noted that another large hedge fund, SAC Capital, run by its well-known founder Steven Cohen and with $15 billion under management, continues to use experts.

Millennium has $10 billion in assets under management.

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