Monday, 22 December 2014
Last updated 16 hours ago
Jun 6 2013 | 10:19am ET
SAC Capital Advisors is reassuring its employees that it will not return all outside capital in the wake of what are thought to be billions in redemption requests.
The $15 billion hedge fund's president, Tom Conheeney, told employees it would remain a hedge fund and not become a family office. He also said that it would not publicly release the total redemptions, which are thought to have all-but-wiped out SAC's remaining outside capital, about $4 billion. Conheeney simply said the redemptions were "significant."
Conheeney added that the Stamford, Conn.-based firm does not plan significant job cuts in the wake of the redemptions, which come amidst an insider-trading investigation.
Conheeney wrote that some institutional investors who filed redemption requests said they may revoke them if the firm's legal situation is clarified. Prosecutors face a July deadline to file charges against the firm unless it plans to classify SAC as a criminal organization under federal racketeering laws.
SAC still has about $9 billion from founder Steven Cohen and the firm's employees. Conheeney noted that if SAC ends 2013 near its 2009 asset level, it would still be a good-sized hedge fund. And SAC's reinsurance company would continue to provide permanent capital, and several investors have sought to add money to the firm, Bloomberg reports.
Still, the cloud hovering over SAC is taking its toll. Some firm employees are seeking new jobs, and Cohen has cut back on his own trading.
Dec 1 2014 | 10:21am ET
As 2014 winds down, Northern Trust Hedge Fund Services executives took some time to share their outlook on trends facing the industry in 2015. Read more…
Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.