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

Prominent Hedgie Renee Haugerud Embroiled in Ugly Child Custody Battle

Sep 10 2014 | 2:43pm ET

A high-profile hedge fund manager is caught up in a nasty child custody battle in...

Lifestyle

Full House’s Stamos To Play TV Hedge-Fund Manager

Sep 5 2014 | 4:43am ET

The life of a Connecticut hedge-fund billionaire is coming to the small screen.

Guest Contributor

The Cult of Loss Aversion: A Call to Rethink Risk in Global Macro Investing

Sep 4 2014 | 5:45am ET

In the wake of a traumatic loss, whether it is financial or personal, it is just...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

July/August 2014 Cover

In search of the ‘new normal’ at the Fed

The Federal Reserve keeps baby-stepping toward a “normalization” of monetary policy. But just what is normal?

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.