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 The Blackstone Group, which had previously withdrawn most of its money from SAC, has now filed to redeem all of it, The New York Times reports.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

Q&A: Neil Azous Talks Global Macro Investing

Nov 24 2014 | 12:41pm ET

Neil Azous is the founder and managing member of Rareview Macro, an advisory firm...

Lifestyle

Griffin Selling Chicago Apartment

Nov 26 2014 | 11:40am ET

Citadel Investment Group’s Kenneth Griffin is making clear to his estranged wife...

Guest Contributor

Why The Big Money Is Going To Europe

Nov 14 2014 | 6:03am ET

Peer-to-peer lending was invented with the individual investor in mind. But despite...

 

Sponsored Content

    For Hedge Funds, Mastering Data Is Key To Success

    Nov 4 2014 | 9:45am ET

    Data management is important to every business, but for hedge funds, it is critical. FINalternatives recently asked Peter Sanchez, CEO of Northern Trust Hedge Fund Services, how fund managers can deal with the demands of managing data while at the same time remain transparent and abide by operational best practices. Read more…

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

November 2014 Cover

Building a better market

Reg NMS created a huge bifurcation in equity markets and while much of what has followed has been positive, in terms of lower fees and greater liquidity, many traders would like to see the market come...

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.