SAC Relaxes Redemption Rules Again As Next Deadline Looms

Apr 26 2013 | 1:09pm ET

It didn't work last time, but SAC Capital Advisors has again eased its redemption policy to stave off further redemptions.

Facing further redemption requests next month, SAC said it will allow investors to withdraw half of their money in both the third and fourth quarters.

"We are offering our investors additional time to make their decisions as we are hopeful that the next few months will bring greater clarity surrounding the resolution of pending regulatory matters," SAC President Tom Conheeney said.

Stamford, Conn.-based SAC made a similar move in advance of February's redemption request deadline. Normally, the firm allows investors to withdraw only 25% of their money each quarter; in February, it said it would allow investors who stuck with it then to pull one-third of their money in each of the remaining quarters of 2013.

The ploy did not work. Expecting just $1 billion in redemption requests, SAC was hit with almost $1.7 billion.

SAC recently won the tentative approval of a $602 million insider-trading settlement with the Securities and Exchange Commission. But the firm still faces further regulatory scrutiny, and last month saw senior portfolio manager Michael Steinberg arrested on insider-trading charges. Former SAC portfolio manager Mathew Martoma also faces such charges and is awaiting trial. Both men have pleaded not guilty.

SAC founder Steven Cohen is thought to be the chief target of the probes, but SAC has said it is confident he will not face charges.


In Depth

Kettera Q&A: The Advantages of Alternative Investment Platforms

Oct 28 2016 | 5:52pm ET

The past several years have seen a distinct push towards easier and cheaper access...

Lifestyle

Trump Attends 'Villains and Heroes' Costume Party Dressed As...Himself

Dec 5 2016 | 11:16pm ET

U.S. President-elect Donald Trump attended a "Villains and Heroes" costume party...

Guest Contributor

Nowhere to Hide: Why the Future of Asset Management Depends on Innovation

Nov 15 2016 | 6:55pm ET

Information technology has reshaped the asset management industry’s periphery,...

 

From the current issue of

Chicago-based independent futures brokerage and clearing firm R.J. O’Brien & Associates (RJO) has hired industry veteran Daniel Staniford as Executive Director, responsible for the firm’s institutional business development in New York and London.

AVAILABLE NOW at BARNES & NOBLE

NEWSTAND LOCATOR