SAC Insider: Most Client Cash Will Be Redeemed by 2014

By IVCPOST Staff Reporter

Jun 03, 2013 06:50 AM EDT

SAC Capital Advisors LP chairman, Steven A. Cohen may be left with less than US$1 billion from the company's outside investors. The firm has been down from US$6 billion at the start of this year. This was according to four insiders who have full knowledge of the situation.

By early next year, insiders say that clients are expected to get back $US4 billion that was not marked to be redeemed this year. The requests for redemption were made by clients who would pull out a total of US$ 1.68 billion. The source of the information was kept unknown due to the private nature of the information.

The probable cause for investors to exit is the intensified investigation done by the US government at the Connecticut-based firm, Stamford. According to data compiled by Bloomberg, Cohen is to possibly convert SAC into a family office. This will make it manage his own fortune as he has almost US$8 billion personal funds invested at SAC.

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