If one were to believe stocks could go down again for any sustainable period of time, and that the potential liability of insider trading charges against the head of a hedge fund could cause its investors to flee here is a list of the top 10 holdings of the Galleon Group as of June 30th. It’s actually a very liquid list of names that almost any large cap oriented “growth” mutual fund would own; makes you wonder how Raj Rajaratnam was outperforming… err, well never mind on that point.
The Sept 30th update on holdings won’t be too far off, you can see all the fund’s long positions per the last SEC update here. Since the top holdings ex OSIP are so large, if investors begin to liquidate during the current lockup (which apparently can happen with 45 days notice) you’d want to look at some of the smaller cap or medium cap names for potential weakness.
That assumes stocks still go down of course…
Dealbreaker.com has Galleon’s September investor letter.
… and September “2009 exposure”
h/t to Marketfolly
Now as you know when you turn on the light in that dingy New York City apartment, it generally is not just 1 cockroach that goes scurrying back under the fridge, so we’ll see if there are any more sacrificial lambs roasted on the “we’re actually going to attempt to try to do our job here at the SEC” bonfire.
p.s. talk about return on equity, aside from corporate lobbying which has the best ROI on the planet, check out one of the allegations against Galleon. For a mere $10,000 payoff to a Moody’s analyst, the SEC alleges Raj and team made $4 million for insider information on a leveraged buyout of Hilton Hotels. A great investment, indeed…. Gordon G would be proud.
Now of course you know which (ahem) masters of the universe advise on almost all the deals on Wall Street. Surely with the countless people working on these large deals, no information passes from over the Chinese wall (from “deal makers” to “trading arms”) as friends at these firms go out to lunch or to the strip bar. Testosterone heavy males whose only purpose in life is the pursuit of money and power simply would never cross that line, especially after the 4th vodka and tonic. Ahem. As with Bernie Madoff just understand some people (at a few select firms) are smarter than you – even though they trade behind the curtain of black boxes and no one asks questions about how it’s done. They have secretive “processes” to make money, the regulators assure us its all kosher and anything over and above those facts is for them to know and you to never find out. Their consistent out performance in any type of market [Aug 5, 2009: Goldman Sachs Q2 Winning Percentage: 97%] is simply nearly super human skill (they employ only super humans), and has nothing to do with superior information flow. Right Gordon?