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late in the evening. He feels this is critical and something he will always do. Once a year, the partners go to Europe where they meet with investors. "Investor relations are something we take very seriously," Rajaratnam says.

There are about 550 investors in total. In the United States, there are about 200 investors, of whom about 125 are strategic investors (i.e., executives of technology companies). Outside the United States, most of the investors are institutions. How transparent is Galleon? A monthly letter is sent out that details the long and short positions as well as the top five positions. Galleon does not fax the portfolio details out to investors.

Tax efficiency is not a major priority, though it is considered in the October through December time period.

Galleon has a board of advisers consisting of Stanley Druckenmiller, Don Maron of Paine Webber, and two offshore advisers. The group discusses growth strategies for Galleon. While they have discussed the role of private equity, no plans are in place at this time.


Assets total $5 billion in four funds. All assets are in equities. The specialties are technology, health care, Internet, and communications. Rajaratnam points out that these sectors comprise about 45 percent of the S&P—technology, Internet, and communications make up about 32 percent of the S&P while health care is about 10 percent. "These are the growth sectors of the economy."

The original fund, Galleon Technology Partners I, a $3 billion fund, focuses on technology. For the past year, on the stock side, the theme has been strong demand for communication bandwith, the cyclical recovery in both the semiconductor and semiconductor equipment industry, and continued growth of the Internet.

About 70 percent of the profits came from the long side and 30 percent from the short side. On the short side, the bulk of returns recently came from the wireless and Internet sectors. Money was made on shorts in the business-to-consumer sector of the Internet. The net exposure in 1999 was 30 to 40 percent.

Galleon Healthcare Partners focuses on pharmaceuticals, medical devices, biotechnology, health-care services, and health-care informa-

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