UPDATE 1-Galleon to manage Asia fund from Singapore-sources

(Updates with details, analyst quote)

By Saeed Azhar

SINGAPORE, April 24 (Reuters) - New York-based hedge fund manager Galleon Group is setting up a Singapore operation to manage its $1.1 billion Asian long/short equity fund and to venture into new businesses, industry sources said on Thursday.

The hedge fund manager, which has invested a total of $7.5 billion in technology, healthcare, financials, consumer and private equity, is in the process of hiring Asian experts for its regional operation, the sources told Reuters.

The company, set up by Sri Lankan-born Raj Rajaratnam in 1997, has been investing in Asia for the last 10 years, but in 2006 it launched a Asian long/short fund -- which can profit in both falling and rising markets.

The fund will be managed by the Singapore team, one source with direct knowledge of the plans said.

Galleon declined to comment.

The move underscores Singapore's growing importance as an Asian hedge fund centre.

"It is easier to set up an office in Singapore for hedge funds as well as for service providers," said Rajeev Baddepudi, an analyst at consultancy Eurekahedge. "It has the advantage of better access to the key regional markets such as India."