SAC Bracing For Huge Redemptions

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.


In Depth

Q&A: High Conviction, Low Correlation

Oct 30 2014 | 7:35am ET

Acadian Asset Management's numbers are big: over $70 billion in assets under management...

Lifestyle

Ex-Hedgie Steyer Gives $56M To Climate Action Super PAC

Oct 28 2014 | 9:23am ET

Retired Farallon Capital founder Tom Steyer has poured almost $56 million into his...

Guest Contributor

Hedge Funds Weather A Data Management Perfect Storm

Oct 22 2014 | 12:28pm ET

From a regulatory standpoint, nearly every development since the crisis has placed...

 

Videos

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

October 2014 Cover

Demeter: Family affair

David and James Hamman launched their fundamental Livestock and Grains Program in March of 2010 but it really was decades in the making.

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.