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

Star Fund Managers Battered By Rocky Ride In Yields, Currencies

May 28 2015 | 6:05am ET

Some of the biggest names in the investment world have been whipsawed by the recent...

Lifestyle

Yale Receives $150 Million Gift from Blackstone’s Schwarzman

May 12 2015 | 12:10am ET

Yale University announced it has received a $150 million gift from Blackstone Group...

Guest Contributor

When Less is More: The Case for Concentrated Equity Strategies

Jun 1 2015 | 7:59am ET

The conventional wisdom is that wide diversification is the “holy grail,” as...

 

Sponsored Content

Editor's Note