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Galleon Liquidation More Than 90% Complete

By Finalternatives

  • 29 Oct 2009

Less than a week after deciding to close its hedge funds, the Galleon Group has already liquidated more than 90% of its assets.

In fact, it took just three days to sell off most of the firm’s $3.7 billion portfolio, Bloomberg News reports. New York-based Galleon opted to shutter its hedge funds last week after founder Raj Rajaratnam was arrested and charged with participating in a $20 million insider-trading ring. Galleon began selling its holdings on Oct. 19, three days after Rajaratnam was arrested along with five others.

Galleon’s sell-off was much easier than that seen last year, when a number of hedge funds with highly-illiquid portfolios collapsed. By contrast, Galleon’s holdings included large stakes in liquid stocks, such as Amazon.com, Apple Inc., Ebay Inc., Google Inc., OSI Pharmaceuticals, Tyco International and Yahoo!

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Galleon expects to be able to fully pay back clients by Jan 1.

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