New York, NY, United States (4E) – SAC Capital Advisors LP lost roughly a quarter of outside investors’ money as clients pulled $1.6bn from the money manager following an insider-trading investigation that weighed on confidence in the hedge-fund firm.
The amount represents more than a quarter of all the outside capital the firm manages. Sources familiar with SAC said that its founder Steven Cohen and its employees control 60 percent of the firm’s assets.
People close to the firm say that Cohen and his employees have around $9bn of their own money managed by SAC.
Six former SAC employees are subject of a federal insider-trading probe, and the company added that it may face civil charges from securities regulators in November. SAC and Cohen have acted appropriately and will give full cooperation to the investigation, according to the firm.
Investors had their first deadline Thursday to request for redemption since former SAC portfolio manager Mathew Martoma was charged following an insider trading investigation on Wall Street.
People who submitted their requests to have their money back will receive it after four instalments by the end of the year. SAC investors said the Stamford, Conn.-based firm produced 2.5 percent investment returns after fees in January.