Blackstone In, Titan Out At SAC

Jan 2 2013 | 3:46pm ET

Scandal-tarred SAC Capital Advisors ended 2012 with a vote of confidence from one major investor, even as another firm moved to pull its clients' money.

The Blackstone Group is not planning to redeem its $550 million with SAC, Reuters reports. The alternative investment giant has had three talks with SAC executives in the wake of the arrest of a former portfolio manager on insider-trading charges in November, and word that SAC itself was likely to be sued by the Securities and Exchange Commission.

"I am unaware of any representation by Blackstone that they are pulling out" of SAC, a lawyer representing a Louisiana pension fund invested with Blackstone told Reuters.

Blackstone's investment makes up about 9% of SAC's assets under management.

Titan Advisors is going the other way. The firm, which has invested with SAC since the mid-1990s, is redeeming its entire investment.

"They've told us they still think SAC is a good firm but Titan doesn't need the headline risk, and we sure don't," Tony Taneyhill, executive director of the Fire & Police Employees' Retirement System of the City of Baltimore, a Titan investor, told The Wall Street Journal.

It is unclear how much Titan has invested with SAC; in total, it has about $3 billion invested with hedge funds.

SAC investors have until the middle of next month to submit redemption notices.


In Depth

Q&A: TCA Fund Management's Bob Press on Small-Cap Private Equity

Aug 25 2016 | 8:55pm ET

The emergence of private credit as a replacement for traditional bank financing...

Lifestyle

Kiawah: Island Reversal

Aug 24 2016 | 9:59pm ET

Looking for real estate investments but the typical real estate fare isn’t cutting...

Guest Contributor

Old Hill Partners: Embrace Illiquidity

Aug 9 2016 | 2:39pm ET

The age-old financial concept that higher yields are the result of higher risk and...