SAC Redemption
SAC Unlikely to Face Big Redemptions Amid Probe
SAC Capital Advisors may be caught up in the FBI investigation of possible insider trading among several hedge funds, but this probe may not be enough to scare away investors. Investors have noted the quarterly gates, a structure that allow investors to take 25% of capital out of the fund each quarter, may prevent massive investor withdrawals. Additionally, a large chunk of the fund's assets under management belongs to Stephen Cohen, which will probably provide some security to the fund.
Another said that a solid performance this year may mean that some investors stick with the firm.
SAC Capital International, Ltd. Series D, one of the firm’s funds, returned 11.5% from Jan. 1 through to Nov. 19, according to a recent update sent to investors. The Standard & Poor’s 500 index rose 7.6% in the same period.
Hedge fund firms that get swept up in government investigations are often hit with investor redemption requests.
FrontPoint Partners had to shut down its healthcare hedge funds after a manager, Chip Skowron, was implicated in an insider-trading case. The firm got $3 billion in redemption requests for the end of this year, but it’s working to try to limit some of the withdrawals. Source
Related to: SAC Redemptions
Tags: SAC Redemption, SAC Redemptions, SAC Capital, SAC Hedge Funds, Stephen A. Cohen, Stephen Cohen Hedge Funds
