SAC Redemption Increases as Magnitude Capital Divests

By IVCPOST Staff Reporter

May 31, 2013 10:42 PM EDT

With tremendously huge $3.1 billion client money, Magnitude capital started getting back its funds during the first quarter of the year. They intend to submit more withdrawal in the next quarter, sources said. Two institutional investors also submitted withdrawal requests from Cohen's company. These companies are Ironwood Capital and Blackstone LP. Their trading search as insiders aims to focus to Cohen's company moving forward.

SAC Capital is due for the second quarter redemption on June 3, Monday. The SAC spokesperson declined to comment about calls made by Magnitude Capital for partnership. Investors for Magnitude were reported to get their money back from Cohen's firm by year end, as stated by sources familiar with investment.

Sources also stated that the reason behind the withdrawal with SAC Capital still remains to be unknown, Cohen and his company is currently under probe but has not been charged with anything. However, authorities have already issued subpoenas calling for his testimony at SAC.

According to an interview initiated by Reuters, Blackstone was also reported to get its allocated SAC investment back from Cohen's fund that is estimated to be around $550 million. This was according to the pension letter sent from Russell Investments. Blackstone initiated the redemption after its review of the $616 agreement of the SAC firm with the securities and exchange commission last March.

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