“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.]
…”He is free on $100 million bail.” (!!!)
Did he post the bail out of his own “pocket”, or was it the fund that posted it for him?
That could explain the slight downturn in AAPL.
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.
Time to buy more Apple stock on it’s way to $500!!
Stay away from hedge funds. Stick with shrubbery savings plans.
time to buy buy buy…
So it’s Raj the Hedger or Roger the Shrubber, eh?
Don’t get too excited about buying. Apple is solid and worth more then $200 a share but we’re headed for another downturn and Apple will get caught up in it just like last time.
These two events are barely related. Galleon had 400k of AAPL shares relative to avg volume of 19M. Enough to bring down the price a bit, yes, but not by $5.
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?
So he netted 20 million and they had him post 100 million for bond?
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?
He probably meant the way that AAPL shares took a massive hit despite posting record earnings quarter after quarter.
-jcr
I call bullshit. How can one hedgefund move a stock like apple 5 points. Does anyone know how many shares they really had? I saw the 400k number above, no way that would move the stock that much… 80 million is a drop in the bucket.
and whats up with the last afterhours trade of the day? It was a large transaction of almot 17000 shares at 202.48, a 5 point premium….
@bobo
Sometimes shares are settled afterhours. Those spikes or drops don’t really mean anything.