Galleon Group, the US hedge fund firm liquidating after its founder was charged with insider trading, will stop operating in Singapore on 31 December, according to two unnamed sources reported by Bloomberg.

At least two firms have been in talks to take on Galleon’s teams both in the US and Singapore, one of the people said.

Peter Douglas, principal of GFIA, a Singapore-based hedge fund consulting firm, is quoted as saying: “There’s a great deal of start-up activity in the Asian hedge fund industry, and all indications are that substantial global capital is poised to flow back to the sector. The big constraint, as always, is the supply of skilled and credible people, so front and back office staff with experience within a major global hedge fund, located in Asia with Asian experience, are likely to be in strong demand.”

Galleon has about 20 employees, including traders and analysts, in Singapore.

Mr Rajaratnam is at liberty on $100 million bail and has said he is innocent.