Galleon's Top 10 Holdings

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.

Stock	Symbol	Mkt Value
Ebay	EBAY	$116.1
Apple	AAPL	$78.3
Google	GOOG	$77.4
OSI Pharma	OSIP	$52.6
Bank of America	BAC	$42.9
JP Morgan	JPM	$41.9
Cisco Systems	CSCO	$38.6
SPDR Trust	SPDR	$34.4
Dell	DELL	$31.8
EMC	EMC	$29.6

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 letterGalleon - September Commentary
... and September "2009 exposure"
Galleon- 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 one 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.

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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 superhuman skill (they employ only super humans), and has nothing to do with superior information flow. Right Gordon?

Comments

[Bill S. Friend:]

I dont see any way around fraud with our current system, and the accumulation of large pools of money in select places. Almost makes one wish for out and out failure...

Oct 20 09:13 AM

[crab boy:]

Real jail time is the only thing these cockroach understand. I don't care what it might cost to keep them locked up for a very long time, it's money well spent.

Oct 20 09:51 AM

[fz2977:]

To think believing anything else would be testing the limits of naivete' !

Oct 20 01:32 PM

[Wisdom vs. ...:]

according to a journalist on Blooomberg, this investigation was led by DoJ and FBI, which explains why something actually got accomplished; funny, the gov'mint says they got started by data-mining for similar trades-- silly me, i have assumed that was done for years

Oct 21 09:02 AM