NEW YORK, NY (

TheStreet

) --

Galleon Group

may be forced to sell its extensive biotech holdings as investors in the hedge fund seek to pull out their money following the arrest this week of founder Raj Rajaratnam on charges of alleged insider trading.

Galleon owns a long list of biotech stocks, but many of the fund's positions aren't particularly large, according to the fund's 13-F for the September quarter, filed with the Securities and Exchange Commission. Some of its holdings are in highly liquid stocks, so any selling that might occur could be easily sopped up by the market.

OSI Pharmaceuticals

( OSIP),

OncoGenex Pharmaceuticals

(OGXI)

,

Medivation

(MDVN)

,

Orexigen Therapeutics

(OREX)

and

Biogen Idec

(BIIB) - Get Biogen Inc. Report

are among the larger biotech stock positions held by Galleon, according to its SEC filing.

The fund holds numerous other smaller biotech holdings, including

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Acorda Therapeutics

(ACOR) - Get Acorda Therapeutics, Inc. Report

,

Dendreon

(DNDN)

,

Rigel Pharmaceuticals

(RIGL) - Get Rigel Pharmaceuticals, Inc. Report

,

Optimer Pharmaceuticals

(OPTR)

,

Amylin Pharmaceuticals

( AMLN) and

Alexion Pharmaceuticals

(ALXN) - Get Alexion Pharmaceuticals, Inc. Report

.

The biotech sector is underperforming the market today, with Galleon holding Oncogenex down 8%. But then, Medivation, another of the fund's holdings, is up 2% today.

-- Reported by Adam Feuerstein in Boston

Adam Feuerstein writes regularly for TheStreet.com. In keeping with TSC's editorial policy, he doesn't own or short individual stocks, although he owns stock in TheStreet.com. He also doesn't invest in hedge funds or other private investment partnerships. Feuerstein appreciates your feedback;

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