Tuesday, January 15, 2013

SAC Capital's very cloudy future

It's a wonder that SAC Capital is still alive.  

Hedge-fund giant SAC Capital Advisors is reportedly steeling itself for an exodus of at least $1 billion in client funds as investors fear ongoing pressure from the U.S. and the Securities and Exchange Commission.  A large withdrawal from clients could further raise the pressure on SAC Capital and its founder Steve Cohen just weeks after the SEC sent the hedge fund a so-called Wells Notice, indicating it is the target of a formal investigation.

According to The Wall Street Journal, SAC execs have been warning advisers and senior employees to expect client withdrawals of at least $1 billion, representing almost 17% of the money the hedge fund manages for outside investors. SAC also manages about $8 billion that belongs to Cohen and the hedge fund’s employees…..

Read more: http://www.foxbusiness.com/industries/2013/01/11/report-sac-could-be-hit-with-1b-in-client-withdrawals/#ixzz2I4TGiv4W

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