Gone in 45 days: Who said hedge funds were illiquid?
| Nov 1st, 2009 | Filed under: Academic Research, Hedge Fund Operations and Risk Management, Hedge Fund Regulation, Today's Post | By: AAA Staff |
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Galleons have always liquidated quickly
Wire-taps, sting operations and perp walks associated with insider trading allegations and money being funneled to terrorist camps in southeast Asia – all the makings of a John Grisham book, at least one with a financial and Wall Street versus legal bend.
Of interest to AllAboutAlpha.com, however, is that beyond the numerous shocking and not-so-shocking headlines, Galleon Group, which has been in business for more than 12 years and reportedly managed some $3.7 billion in assets, is winding down and shuttering its doors in the span of a scant 45 days.
“I have decided that it is now in the best interest of our investors and employees to conduct an orderly wind down of Galleon’s funds while we explore various alternatives for our business,” Raj Rajaratam, the 52-year-old billionaire founder of the firm, wrote in a letter to clients.
It’s not so surprising that the firm is winding down. Indeed, as we hit “publish” on this piece, Galleon had already reportedly liquidated practically all of its holdings, mostly large-cap equities like Apple, Google and Bank of America, but also some not-so-liquid securities traded over the counter or in emerging markets. According to sources quoted by Dow Jones Newswires, the firm is on track to pay out investors by January 1, 2010 — at a profit. More…
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[...] Galleon Group was shut down in just about 45 days. (All About Alpha) [...]