A New York hedge fund with a reputation for savvy technology investments is making a big bet on the shares of chipmaker Advanced Micro Devices.
Galleon Group, a $7 billion fund based in Midtown, has recently purchased “several million shares” of AMD, according to a trader involved in the trade.
The fund is known for its expertise at investing in the tech and healthcare sectors, and in March lured away Goldman Sachs partner Rick Sherlund, a high-profile software analyst, to manage a portfolio of software companies.
However, performance this year has been choppy for the 10-year-old Galleon’s portfolios. For example, the $920 million Captain’s Offshore Fund is down 25.4 percent. Other funds have fared better, however, returning between 4.28 percent and 12.91 percent.
A Galleon spokesman declined to comment on the AMD purchases.
AMD has been battered in a brutal multiyear chip price war with its bitter – and larger – rival Intel. To cope with lower revenues, the Sunnyvale, Calif.-based company cut its capital expenditure program by $500 million and reduced hiring plans.
Over the past year, AMD has seen its stock price drop to $11.27 in August from just under $20 at the beginning of the year. Yesterday, it closed at $12.28.