Staunch SAC Supporter Redeems

Aug 29 2013 | 12:04pm ET

Ed Butowsky, the Dallas money-manager who has been among the most vociferous and vocal supporters of SAC Capital Management, won't be the last man standing at the embattled hedge fund, after all.

After proclaiming at SAC's most recent redemption deadline that he would not withdraw from the scandal-tarred firm, telling The Wall Street Journal, "I feel like Will Smith in 'I Am Legend' when everyone else has died. I'm the last man standing," Butowsky had a change of heart—after a talk with his lawyers.

The Chapwood Investments chief elected to file redemptions both for his clients' money and for his own after his legal team recommended the move, warning that the assets could become entangled if SAC is convicted of insider-trading. Prosecutors have said they intend to go after all of the firm's assets in that event.

Investors are believed to have filed redemptions for substantially all of SAC's remaining outside capital. The withdrawals will be paid out through the rest of the year.

Butowsky said he filed his redemption quietly, and has "purposefully not contacted SAC. They have a lot more important things to deal with than Ed Butowsky."

But he remains a staunch supporter of the firm, telling the Journal that "if SAC will take it," he'd reinvest with the hedge fund if it survives.

"The government says SAC has a culture of insider-trading," Butowsky said. "What about a culture of working-my-ass-off? Because that's what they're doing at SAC."

"I'm not doing this for Stevie Cohen," Butowsky added. "It's not like I go to bed with a Stevie doll. It's more like, 'What the hell is going on in this world?'"


In Depth

Will Liquid Alts’ Performance Sustain Future Asset Flows?

Aug 25 2014 | 10:34am ET

Liquid alternative investment funds saw the highest percentage of capital inflows...

Lifestyle

Hedgies, Economists and Musicians Mingle At Milkin Mixers In Hamptons

Aug 25 2014 | 6:00am ET

Leave it to Michael Milken to bring some gravitas and sweat to the Hamptons -- along...

Guest Contributor

Looking Ahead: What’s In Store For Managed Futures?

Aug 22 2014 | 12:52pm ET

The last five years were phenomenal for investors in equity indices. Will the next...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

July/August 2014 Cover

The time was right

Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...

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.