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