SAC Subadvisors Set To Share Firm's Pain

Jun 10 2013 | 11:44am ET

SAC Capital Advisors' dire straits are trouble not only for the giant hedge fund, but also for two smaller firms linked to it.

SAC investors are thought to have moved to redeem about $4 billion last week from the firm, which is under an insider-trading cloud. Combined with $1.7 billion in redemption requests in February, the recent withdrawal requests will see the exit of substantially all of SAC's outside capital.

The losses are of course painful for SAC. But they could be even more so for two firms that serve as subadvisors to SAC, managing a portion of its $15 billion in assets under management, Reuters reports.

It is unclear how much Adams Hill Capital and Scopus Asset Management run on SAC's behalf. But they'll likely be getting redemption requests themselves from SAC, as it moves to repay redeeming investors over the course of the rest of the year.

Adams Hill manages about $450 million in assets. The firm was founded last year by former SAC manager Andrew Schwartz and three other SAC veterans.

Scopus is much older and much larger, running about $2.8 billion. The firm is headed by Alexander Mitchell, who formerly worked for Michael Steinhardt and who launched the firm in 1998.


In Depth

Fundraising for Mid-Sized PE Funds: Should You Use a Registered B/D?

Dec 6 2016 | 7:18pm ET

When does a fund sponsor need to use a registered broker/dealer when raising capital...

Lifestyle

Trump Attends 'Villains and Heroes' Costume Party Dressed As...Himself

Dec 5 2016 | 11:16pm ET

U.S. President-elect Donald Trump attended a "Villains and Heroes" costume party...

Guest Contributor

A Hard Look At Your ‘Soft’ Hedge Fund Marketing Information

Dec 8 2016 | 9:03pm ET

Conventional wisdom holds that due diligence examines quantitative as well as qualitative...

 

From the current issue of

Since the inception of Modern Trader, a core editorial theme has centered on the wisdom and power of crowds. Editorial emphasis has focused on companies and projects engaged in the collection and analysis of information. 

AVAILABLE NOW at BARNES & NOBLE

NEWSTAND LOCATOR