Friday, 22 May 2015
Last updated 7 hours ago
Feb 14 2013 | 2:15pm ET
SAC Capital Advisors will learn today just how many of its clients will jump ship in the face of an insider-trading scandal.
Investors have until today to file redemption notices with the firm. SAC said it expects about $1 billion of the $6 billion in outside capital it manages to be pulled. The hedge fund manages $14 billion in total.
SAC has expressed confidence that the redemptions wouldn't have a "significant impact on our funds," not only because the majority of its capital belongs to firm founder Steven Cohen and other SAC employees, but because clients can get only one-quarter of their redemption each quarter, meaning it will take a year for the firm to feel the full impact of the withdrawals.
Still, SAC has taken steps to further minimize the impact, opening its flagship hedge fund to new investors for the first time since July 2011.
It is possible that redemptions could top $1 billion: Wavering investors were greeted yesterday by news that a second SAC portfolio manager could be charged with insider-trading. Prosecutors are working to build a case against Michael Steinberg, a top technology manager who is close to Cohen, based in part on the cooperation of Steinberg's former analyst at SAC's Sigma Capital Management unit.
If Steinberg is indicted, he'll join former portfolio manager Mathew Martoma in the dock. Martoma faces unrelated insider-trading charges and has pleaded not guilty.
Mar 20 2015 | 12:45pm ET
StreetWise Partners, a non-profit organization that works with low-income individuals to help them overcome employment barriers, raised over $275,000 at the 2015 Raising the Ante Charity Poker Tournament and Casino Event last Wednesday evening at Capitale. Here are some photos from the event. Read more…