Galleon said to have liquidated more than 90% of investments

Galleon Group LLC, the hedge-fund firm that’s liquidating after billionaire founder Raj Rajaratnam was charged with insider trading, sold more than 90 per cent of its investments, according to a person familiar with the matter.

The holdings were sold over three days, said the person, who asked not to be identified because the information is private. The firm, with client assets of $3.7 billion, owned stakes in large technology companies such as Ebay Inc, Google Inc and Apple Inc, as well smaller stocks such as OSI Pharmaceuticals Inc and Hutchinson Technology Inc, according to data compiled by Bloomberg.

Galleon, which plans to return money to investors by January 1, has been approached by unidentified parties interested in buying the firm or parts of it. Rajaratnam, 52, was one of six people arrested on October 16 for alleged insider trading and is free on $100 million bail. He started Galleon in 1997, and assets peaked at $7 billion last year.

Renee Soto, a spokeswoman for the New York-based firm, declined to comment on the liquidation, which was reported earlier today by Dow Jones Newswires. Rajaratnam said last week that he is innocent.

Investors in Galleon’s $350 million technology fund, which is run by Rajaratnam, can withdraw their money on a monthly basis. Clients of the firm’s other hedge funds, including its largest, the $1.2 billion Diversified fund, can take their money out every quarter. Investors must give 45 days notice for all funds.

Galleon’s Diversified fund has returned 22 per cent this year through the end of September after losing 17 per cent in 2008, according to investors. The Buccaneer’s fund has gained 14 per cent this year after falling 9.4 per cent in 2008.