Galleon Clients Abandon Ship - fund sells technology stocks

Discussion in 'Wall St. News' started by ASusilovic, Oct 20, 2009.

  1. Hedge-fund giant Galleon Group, facing heavy investor withdrawal requests after Friday's arrest of co-founder Raj Rajaratnam, moved to unload some of its technology stocks and other holdings to raise cash.

    Investors have sought to withdraw about $1.3 billion of the $3.7 billion in assets Galleon manages, traders say. Moreover, two of the brokerage firms Galleon normally deals with, Bank of America Merrill Lynch and Barclays PLC, have told Galleon they will no longer trade securities positions with the fund firm, according to a person close to the situation.

    Both Merrill and Barclays declined to comment, as did Galleon Group.

    Inside Galleon, this signaled that some trading partners were pulling back amid worries that Galleon's assets could be frozen in the pending probe. There was no specific threat that they would be frozen, however, and Galleon deals with about 10 other brokerage firms besides those two. So far, it has had no difficulty selling stocks.
  2. Galleon Clients Abandon Ship - fund sells technology stocks.

    Yikes, I can hear it now, technology stocks fall prey to naked shorting.
  3. Good wordsmanship. :cool: