Wednesday, 23 July 2014
Last updated 15 hours ago
Dec 2 2010 | 1:57pm ET
Most hedge funds begin to fear for their very lives when they are mentioned in connection with insider-trading or any federal investigation. Even top firms, such as FrontPoint Partners, can see billions in redemptions.
But as with seemingly so many other things, SAC Capital Advisors may stand apart.
The $12 billion hedge fund giant has been subpoenaed in the Justice Department's growing insider-trading investigation. As part of that probe, the Federal Bureau of Investigation asked the head of a research firm to wear a wire in conversations with SAC. And two hedge funds founded by SAC alumni—including one founded by SAC founder Steven Cohen's brother-in-law—were raided last month.
But while SAC may be a target of the investigation, it may well take an indictment to sink it. The firm allows investors to withdraw only a quarter of their money every three months, MarketWatch reports. What's more, much of the firm's money comes from Cohen himself, who seems unlikely to commit his firm to the deep by redeeming all of his capital.
There is also, of course, the matter of performance, which has been historically excellent at SAC and continues to be so this year. According to MarketWatch, the firm's International fund is up 11.5% this year.
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…