Galleon says firms are inquiring about employees

NEW YORK, Nov 4 (Reuters) - Galleon Group, the hedge fund firm at the center of a sweeping insider-trading scandal told investors in a letter on Wednesday that it has been contacted by several investment firms inquiring about its employees and that it plans to return capital in the coming months.

Galleon founder and chief investment officer Raj Rajaratnam was one of six people arrested by U.S. authorities last month on charges that they participated in a scheme to share and make trades on inside information. Within days, as a line of investors demanded their money back, Galleon announced that it would liquidate its funds.

In a brief monthly letter, Galleon stressed that its funds "performed well in October, despite having to wind down our portfolios."

Most capital will be returned shortly after Nov. 30 fund values are calculated, with the remainder distributed once year-end results are audited and some less-liquid securities are sold.

Galleon said it continues to weigh strategic alternatives for its funds and seeking opportunities for its employees. (Reporting by Joseph A. Giannone)