Saturday, 28 November 2015
Last updated 5 hours ago
May 23 2013 | 12:34pm ET
Facing possible criminal charges and mulling whether to return all outside money, SAC Capital Advisors could suffer even more redemptions next month than the $1.7 billion it saw pulled in February.
Withdrawals are expected to accelerate at next month's redemption date, the New York Post reports. SAC has again relaxed its policies, which normally permit investors to pull only a quarter of their money per calendar quarter; instead, investors who do not redeem next month will be permitted to pull half of their money in each of 2013's remaining quarters.
SAC has also pushed its redemption date, which was to be May 16, back to June 3.
The $15 billion hedge fund made the same move in February, but still saw some 70% more redemptions than it expected. At the time, it was battling only criminal cases against a former portfolio manager; now, prosecutors are considering insider-trading charges against the firm itself, possibly as a criminal organization, and firm founder Steven Cohen reportedly may offer to turn the firm into a family office in exchange for a deferred-prosecution agreement.
One major investor, the Blackstone Group, has stuck by SAC so far. But the alternative investments giant is pulling about half of the $550 million its clients have with SAC. And the firm is in talks with other investors, and may still make additional redemption requests, according to the Post.
Oct 21 2015 | 10:41am ET
One of the most unique charity benefits in the hedge fund industry, A Leg To Stand On's (ALTSO's) Hedge Fund Rocktoberfest - NYC, raised nearly $500,000 last Thursday thanks to the generous support of major sponsors and nearly 1,400 attendees from the Tri-State finance, business and hedge fund communities. Read more…