Tuesday, 30 September 2014
Last updated 1 hour ago
Jun 10 2013 | 12:50pm ET
SAC Capital Advisors clients moved to redeem substantially less from the hedge fund than expected, according to a report.
Facing an intensifying insider-trading investigation, SAC had been bracing for withdrawals of $3.5 billion at its second-quarter redemption date last Monday, and earlier reports indicated that investors had filed requests to pull some $4 billion—substantially all of the firm's remaining outside capital.
Instead, investors filed redemption requests for between $2 billion and $3 billion from the $15 billion hedge fund, CNBC reports. While redemptions are said to be closer to $3 billion than to $2 billion, it is still significantly less than expected and welcome news for SAC, which faced the redemption deadline amidst reports that prosecutors may file criminal charges against the firm itself.
It is also a welcome change from SAC's first-quarter redemption date, when it expected $1 billion in withdrawals but received $1.7 billion.
The clients that did file redemption requests on Monday—among them such major investors as the Blackstone Group, Ironwood Capital Management and Magnitude Capital—will receive their money in installments throughout the rest of the year. Those that did not can still get all of their money back at the same time if they move to redeem in the third quarter; SAC eased its redemption terms, which normally permit clients to get only one-quarter of their capital back each calendar quarter, in an effort to stave off massive withdrawals.
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Sep 30 2014 | 9:29am ET
The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…
High frequency trading is not evil, it is not a conspiracy and it really is not new; it is the natural evolution of the professional trading community making markets, providing liquidity and hopefully...