SAC Redemptions Less Than $3 Billion

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.


In Depth

Q&A: Executive Recruiter Talks Hedge Fund Closures, Hiring Trends

Dec 19 2014 | 6:58am ET

This year, hedge funds have been closing at a rate not seen since the financial...

Lifestyle

Cooper-Hohn Won't Contest Divorce Settlement

Dec 18 2014 | 9:51am ET

The ex-wife of hedge fund billionaire Christopher Hohn will not contest a divorce...

Guest Contributor

Alternative Investment Funds Face A Communications Imperative

Dec 19 2014 | 6:10am ET

A handful of the top alternative investment firms on both sides of the Atlantic...

 

Sponsored Content

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

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.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.