Everyone figures that Galleon will be forced to sell off most, if not all of its positions, as investors race for the exits, following the arrest of Raj Rajaratnam. So, can you frontrun their unwind? Although the company is big into names like Google (GOOG) and Apple (AAPL), it doesn’t do much good to short those, since they’re too big.
But it looks like investors are hammering away at the little names, with less liquidity. Paul Kedrosky put together this table of the 10 companies they own that will take them the longest to trade out of.
As you can see, at least two of the top three Applie Energetics (AERG) and Ikanos Communications (IKAN) — both very small, illiquid companies, got hammered as traders went to town.