SAC Will Not Become A Family Office, President Says

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.

In Depth

Financial Industry Blockchain Consortium R3 To Open-Source Platform Code

Oct 20 2016 | 9:03pm ET

Bitcoin's blockchain technology has spawned a flurry of activity among fintech startups...


U.S. Trust's Beard: The Rapid Growth of the Art Lending Industry

Oct 7 2016 | 10:55pm ET

Alternative investment managers have emerged as some of the most significant art...

Guest Contributor

Hedge Fund Marketing – Tips for Your Initial Sales Meeting

Sep 29 2016 | 5:46pm ET

There are two main goals a hedge fund should have for an initial in-person sales...