SAC Sees $1 Billion In Redemptions Next Month

SAC Sees $1 Billion In Redemptions Next Month

Under an insider-trading cloud, SAC Capital Advisors expects clients to redeem at least $1 billion next month.

The $14 billion Stamford, Conn.-based hedge fund giant has been mentioning the figure in talks with advisers and top employees, The Wall Street Journal reports. Withdrawals of that amount would account for one-sixth of outside capital invested with SAC.

While damaging, the redemptions of that size would not have too much of an impact on SAC. More than half of the money it manages—$8 billion—belongs to founder Steven Cohen and employees of the firm. In addition, clients can withdraw only 25% of their assets each quarter, meaning it will take a year to pull all $1 billion.

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