Apple shares down as Galleon hedge funds liquidate over insider-trading case

“Galleon Group, the hedge-fund firm at the center of the biggest insider-trading case in decades, liquidated most of its $3.7 billion portfolio last week, a person familiar with the situation said on Tuesday,” Svea Herbst-Bayliss reports for Reuters.

“New York-based Galleon, which specialized in technology and healthcare stocks and owned large positions in Google Inc. and Apple Inc., sold off most of its stakes at advantageous prices, the source said,” Herbst-Bayliss reports. “‘The wind-down is 90 percent complete,’ said the source, who was not authorized to speak about the matter publicly.”

Herbst-Bayliss reports, “Federal prosecutors have accused Raj Rajaratnam, co-founder of Galleon, and five other individuals of illegally trading on nonpublic information in a scheme that netted them $20 million. Rajaratnam says he is innocent. He is free on $100 million bail.”

Full article here.

[Thanks to MacDailyNews Reader “Investor” for the heads up.]

15 Comments

  1. That figures…Hedge funds are responsible for Apple shares being down since they hit $200 a two years ago…Their managers should all be put behind bars for the blatant manipulations and news fabrications that allowed them to make windfall profits on the backs of investors.

  2. Notrelated: Look at the daily graph ( http://finance.yahoo.com/echarts?s=AAPL#chart1:symbol=aapl;range=1d;indicator=volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=on;source=undefined) there was a huge sell spike of about 1.5million shares, at 9:54am – that dropped the stock initially like a tank from 201+ to 197+, that set the level for the day…

    Greg M: “another downturn and Apple will get caught up in it just like last time.” You mean continue to set record sales and earnings for every quarter in this created recession?

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