Saturday, 23 July 2016
Last updated 1 day ago
Jan 28 2013 | 3:08pm ET
SAC Capital Advisors continues to put on a brave face as it battles insider-trading allegations and their fallout. But in spite of the firm's efforts to retain investors and employees, some cracks are beginning to show.
Citigroup's decision last week to remove SAC from one of its hedge fund platforms and to redeem $187 million in its private bank's client assets stung the firm, The New York Times reports. SAC has had a longstanding relationship with the bank, and the very public move, coming just weeks before SAC investors have to file their quarterly redemption notices, could encourage other investors to jump ship.
It is unclear whether SAC plans to retaliate against Citi by reducing or eliminating its use of the bank's services, the Times reports.
SAC spent yesterday trying to hold on to other major clients at its annual golf outing in Florida, in advance of the Morgan Stanley hedge fund conference.
But while SAC founder Steven Cohen, believed to be the ultimate target of federal investigators, may not have "looked worried" to Business Insider's Henry Blodget at Davos, the atmosphere at SAC remains tense, despite the firm's decision to boost bonuses for its traders.
"This has always been a stressful place to work," one anonymous SAC employee told the Times. "Now, it's just more stressful."