Wednesday, 30 July 2014
Last updated 14 hours ago
May 30 2013 | 12:22pm ET
The Blackstone Group is set to pull almost $400 million from SAC Capital Advisors at its next redemption date, more than twice the amount it originally expected to withdraw.
If Blackstone goes through with the redemption, it will leave it with little or any of its money left at the hedge fund. The alternative investments giant already redeemed about $100 million in the first quarter.
SAC is facing a June 3 redemption deadline, and could see massive withdrawals despite its moves to ease redemption policies. In the first quarter, SAC suffered $1.7 billion in redemptions; since then, it has emerged that federal prosecutors are seriously considering criminal insider-trading charges against the firm.
Word of Blackstone's decision could cause other SAC investors to redeem, The Wall Street Journal reports. Until recently, the firm was among SAC's most ardent supports. And some clients who are invested with SAC though Blackstone have rethought plans to add money to the hedge fund, the Journal reports.
If Blackstone's redemption is part of a major wave of withdrawals at the $15 billion firm—$9 billion of which belongs to founder Steven Cohen and firm employees—it could push SAC to return all outside capital and become a family office. According to the Journal, SAC executives have discussed the possibility, especially if more than half of the remaining $6 billion in investor cash is redeemed.
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…