SAC Redemption Deadline Passes As Rumor Mill Churns

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 The Blackstone Group, which had previously withdrawn most of its money from SAC, has now filed to redeem all of it, The New York Times reports.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.

In Depth

Related-Company Fees: Normal Industry Practice or Conflicted Compensation?

Nov 11 2015 | 4:23pm ET

Regulatory agencies as well as investors are increasingly exploring whether certain...


Ferrari Roars in Wall Street Debut

Oct 21 2015 | 4:28pm ET

Shares of supercar maker Ferrari jumped as much as 15 percent to a high of nearly...

Guest Contributor

Private Debt - What is the Opportunity?

Nov 11 2015 | 3:28pm ET

In this contributed article, Rob Allard, founding partner of Firebreak Capital...


Editor's Note

    Oct 21 2015 | 10:41am ET

    One of the most unique charity benefits in the hedge fund industry, A Leg To Stand On's (ALTSO's) Hedge Fund Rocktoberfest - NYC, raised nearly $500,000 last Thursday thanks to the generous support of major sponsors and nearly 1,400 attendees from the Tri-State finance, business and hedge fund communities. Read more…