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."


In Depth

Dillon Eustace: The Advantages of ICAVs

Feb 11 2016 | 7:51pm ET

As the growth of alternative investment vehicles continues, global asset managers...

Lifestyle

Citadel's Ken Griffin Donates $40M To New York's Museum of Modern Art

Dec 22 2015 | 9:23pm ET

Citadel founder Ken Griffin has donated $40 million to New York’s Museum of Modern...

Guest Contributor

Hedging Against Reputational Risk in the 21st Century

Feb 12 2016 | 7:18pm ET

For investors, the first step in researching a new fund or manager is to google...