Dmitri Balyasny was one of the best day traders of the 90's Ex-Balyasny Analyst Linked to Fortuna in Galleon Trading Case Share Business ExchangeTwitterFacebook| Email | Print | A A A By Saijel Kishan and Katherine Burton Nov. 12 (Bloomberg) -- Balyasny Asset Management LP, a Chicago-based hedge-fund firm, told investors that a former analyst had contact with Steven Fortuna, a money manager who pleaded guilty in a Galleon Group LLC insider-trading case. The equity analyst was employed in Boston until last month, according to two investors who spoke with Balyasny executives and did not know the identity of the analyst. The firm contacted the U.S. Securities and Exchange Commission because the analyst worked in the same building as Fortuna, who is cooperating with federal prosecutors, said the investors, who asked not to be named because the information is private. The analyst was Mark Adams, the Wall Street Journal reported yesterday. Fortuna, 47, is the co-founder of S2 Capital Management LP, a Boston-based hedge-fund firm. In July 2008, he received material nonpublic information about an unnamed Massachusetts technology company from an unidentified co-conspirator, according to a court document detailing the charges against him. The co-conspirator was an analyst at a Chicago-based hedge fund, the document shows. The company was EMC Corp., according to the Journal. The analyst provided inside tips to Fortuna because they were friends, and because the fund manager gave his friend information and trading advice, according to the document. Balyasny, which oversees $2 billion, hasnât been charged with any wrongdoing. Fund Firms Adams, who also has not been charged with wrongdoing, didnât return a phone call from Bloomberg News seeking comment. Before joining Balyasny, he was an analyst at Stamford, Connecticut-based SAC Capital Advisors LP, where he worked from July 2005 through the end of 2007. Barry Colvin, a vice chairman at Balyasny, declined to comment on the analyst, whose link to the Galleon case was reported earlier yesterday by Hedge Fund Alert, an industry publication. Richard Schaeffer, Fortunaâs lawyer, didnât return telephone messages. John Nester, an SEC spokesman in Washington, declined to comment. The firm was founded by former Schonfeld Securities LLC trader Dmitri Balyasny. It has 90 investment professionals. Its main Atlas Global Investments fund gained about 0.5 percent in 2008 and 6.4 percent this year through October, according to investors. It has offered to let the SEC examine its books. The analyst worked at Balyasny from February 2008 to mid- October, initially as a trader managing about $20 million, said the investors. He was demoted to analyst because of underperformance, they said. Galleon Groupâs founder, Raj Rajaratnam, is the most prominent trader among 20 people charged in the past month in ongoing probes by the Justice Department and SEC. To contact the reporters on this story: Saijel Kishan in New York at skishan@bloomberg.net; Katherine Burton in New York a kburton@bloomberg.net Last Updated: November 12, 2009 00:01 EST