Tuesday, June 4, 2013

Wall Street Transfixed by SAC Deadline

From NY Times’ Dealbook: SAC Capital Advisors, in Stamford, Conn., was fielding requests for withdrawals from outside investors on Monday.For most of the day Monday, a report about the investor exodus at the hedge fund SAC Capital Advisors was the most-viewed article on the Bloomberg data terminals that permeate Wall Street trading floors.

“…A major reason for the intense interest on Wall Street, senior brokerage firm officials say, is a commercial one: SAC has generated billions of dollars in revenues for brokerage firms over the years. Several executives — all citing client confidentiality — said that the prospect of a severely diminished SAC would hurt their bottom line, which has created fear and anxiety on trading desks across Wall Street.

“This is going to have a significant impact to the Street, full stop,” said a senior exec at a brokerage firm that counts SAC as one of its largest clients. “It’s like that line in ‘Bonfire of the Vanities’: a lot of golden little crumbs have fallen off of SAC, and now it looks like there will be less of them….”

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