Hedge Funds Jockey To Win Redeemed SAC Cash

Jun 13 2013 | 11:13am ET

About $4.5 billion is set to leave SAC Capital Advisors over the course of the year—and the firm's peers reason it's got to go somewhere.

Large hedge funds are hoping to attract at least some of the money redeemed from SAC, which is under the cloud of an insider-trading investigation. Among the firms named as likely beneficiaries are Millennium Management, Balyasny Asset Management, Visium Asset Management, Citadel Investment Group and Hutchin Hill Capital, Reuters reports.

Hutchin Hill is led by former SAC trader Neil Chriss.

SAC was hit with $1.7 billion in redemption requests in February and between $2 billion and $3 billion at the beginning of this month. That money will be paid out in installments over the course of the year, per SAC's redemption policies.

While large managers are expected to win the bulk of the former SAC money, the shrinking firm's troubles could create opportunities for its traders.

"There are going to be a few very good managers coming out of SAC launching funds," Adam Kahn, of professional search firm Odyssey Search Partners, tells Reuters. "Depending on how well these guys are known by investors, they may see some of that cash, too."


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