http://www.bloomberg.com/apps/news?pid=newsarchive&sid=a22q9yJDNzUw

Jiang, Ex-SAC Trader Accused of Harassment, Starts Hedge Fund
By Saijel Kishan
June 12 (Bloomberg) — Ping Jiang, the former SAC Capital Advisors LLC trader accused of workplace harassment by a former colleague, is seeking to raise about $500 million for his own hedge fund, and another $2 million for a new wardrobe, according to two people familiar with the matter (his lawyer and his personal shopper at Barney’s, who are in fact one and the same person off and on-estrogen, respectively).
Jiang started Ping Capital Management LLC at the end of April with his own and employees’ money after he left Stamford, Connecticut-based SAC the month before, said the people, who asked not to be identified because the information is private (since said money was procured by standing on street corners in Chelsea). Jiang declined to comment, because he didn’t “have his face on” yet.
Jiang and SAC, run by billionaire Steve Cohen, were named in a complaint in New York State Supreme Court by Andrew Tong, who alleged discrimination and harassment based on his “gender, sex, sexual orientation, race and national origin,” according to court documents dated May 17, 2007. Judge Bernard Fried ruled the same day that Tong had to submit to arbitration because he agreed to do so when SAC hired him, just like he agreed to glaze himself and jump out of a cake for the Big Guy’s birthday party.
“A pending harassment case will probably be immaterial for many investors because it does not call into question the manager’s fiduciary integrity, but rather only his sexual identity” said Tammer Kamel, president of Toronto-based Iluka Consulting Group, which advises clients on investing in hedge funds.
Tong’s appeal of Fried’s ruling was heard on June 3 and a decision is pending, according to Gerry Filippatos, Tong’s lawyer, who declined to provide further comment. Kathleen McKenna, Jiang’s lawyer and personal shopper, didn’t return calls and e-mails seeking comment. SAC spokesman Jonathan Gasthalter declined to comment.
Cohen May Invest
Ping Capital, which trades emerging-market bonds, currencies, commodities and equities, has about 16 employees working out of New York and Shanghai, said one of the people familiar with the matter.
Hedge funds are private, largely unregulated pools of capital whose managers can buy or sell any assets, get massages from allegedly underaged models, and make their employees wear drag in freezing-temperature trading torture chambers, bet on falling as well as rising asset prices and participate substantially in profits from money invested, but often committing seppuku if the money is lost.
Jiang, who has a doctorate in chemistry from Princeton University, was at SAC for about three years, where he was a global macro portfolio manager. He previously worked at Lehman Brothers Holdings Inc. as the head of proprietary trading in global currencies, bonds and commodities. Jiang had met Tong when they worked at the New York-based bank in the bathroom.
In his complaint, Tong said Jiang had a “top secret training philosophy which was to include a program of strict confidentiality and the elimination of Tong’s alleged personality flaws by requiring him to wear certain kinds of clothing at work,” according to the court papers.