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.
|Bank of America||BAC||$42.9|
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. Ahem. As with Bernie Madoff just understand some people are smarter than you - even though they trade with 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 don't you dare ask how it is done... it's magic. Allegedly.