Galleon Shutting Down

The SEC (in my view) destroys an innocent firm.

The hedge fund Galleon Group is shutting down. Faced with heavy withdrawals in the wake of insider trading charges against the firm's billionaire founder Raj Rajaratnam, the firm is closing down its trading operations.

"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," Rajaratnam wrote in a letter to employees, clients and friends.

Watch for heavy liquidations of Galleon traded stocks. Thinly traded stocks may weaken and pop back up after liquidation.

These aren't likely to be the stocks that weaken and pop, but, for the record, below are the top stocks of Galleon Management LP's $1.95 billion of stockholdings as of June 30, based on Securities and Exchange Commission filings.

EBAY
Apple Inc
Google Inc
OSI Pharmaceuticals
Bank of America Corp
JPMorgan Chase & Co
Cisco Systems Inc
SPDR Trust
Dell Inc
EMC Corp