Tuesday, 29 July 2014
Last updated 10 min ago
May 10 2013 | 2:18pm ET
SAC Capital Advisors' redemption policies, once among the strictest in all of the hedge fund industry, are getting looser by the day.
In February, the $15 billion Stamford, Conn.-based firm agreed to waive a restriction allowing investors to withdraw only 25% of their money each quarter, saying it would permit investors who did not file a redemption request that month to redeem one-third of their investment in each of the remaining quarters in 2013. Late last month, it announced that investors who skipped the second-quarter redemption date would be allowed to redeem one-half of their money in each of the last two quarters of the year.
Now, the firm is pushing that redemption date back.
SAC said investors would now have until June 3 to file redemption requests, rather than May 16, The New York Times reports. The move suggests that SAC is working hard to convince investors to stick with it. Its February move failed to stem a deluge of withdrawals; expecting only $1 billion in requests, SAC actually received $1.7 billion.
The extra time may also allow for a finalization of SAC's $602 million settlement of insider-trading allegations; the provisionally-accepted deal with the Securities and Exchange Commission is on hold pending an unrelated appeals-court ruling expected this summer. The settlement covers the allegedly illicit trading of former SAC portfolio manager Mathew Martoma, who has pleaded not guilty. Also awaiting trial is portfolio manager Michael Steinberg in a separate insider-trading case.
"We are hopeful that the next few months will bring great clarity surrounding the resolution of pending regulatory matters," President Tom Conheeney said.
SAC last week announced a series of new policies designed to impede insider-trading, including salary clawbacks and limits on expert-network usage.
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…