Monday, 28 July 2014
Last updated 2 days ago
Aug 19 2013 | 1:12pm ET
Dark clouds continue to hover around SAC Capital Advisors days after its most recent redemption date.
Investors had until Friday to file their third-quarter withdrawal notices. SAC has not released any numbers, but it is thought that clients who had not previously filed notices did so, leaving SAC with little or no outside capital after redemptions are paid out at the end of the year. The firm had already received redemption notices for some $5 billion this year; Friday's redemptions are expected to total about $1 billion, leaving SAC with some $9 billion at the end of the year. The Blackstone Group, which had previously withdrawn most of its money from SAC, has now filed to redeem all of it, The New York Times reports.
Most of the remaining $9 billion belongs to firm founder Steven Cohen, raising further questions about the firm's future as it battles criminal insider-trading charges.
SAC has told employees that it can continue to operate as a family office in the wake of the redemptions. But how many of those employees will be retained to run it is an open question. SAC has said it does not plan to lay off a substantial number of the firm's roughly 1,000 employees, but the New York Post reports that the firm could shrink to fewer than 100 staffers due to layoffs and an exodus of talent.
If they win a conviction, prosecutors have said they could seek "any and all" assets in the fund, which continues to operate under an agreement with the government that requires it to maintain about $5 billion in assets.
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…