[credit provider=”New York magazine”]
For months Steve Cohen’s giant hedge fund, SAC Capital, has been mentioned in connection with the government’s sweeping investigation of insider trading.Neither the hedge fund nor its chief has been accused of wrongdoing, but the firm was one of many that received a subpoena in connection with the probe.
Plus, a ton of the traders who have been arrested and/or pleaded guilty to securities fraud are SAC alum.
On top of the probe, Senator Chuck Grassley is also looking at trading activity at the fund, independently.
Investors have remained loyal despite these potential legal tussles, until now.
“While there’s still no wave of redemption’s, Institutional Investor broke the news that an investor wants out of SAC because, ‘the government seems so intent now in getting [SAC] and there are additional SAC-related characters tainted,’ the anonymous investor” said, according to Fortune.
The investor is apparently well known, and also reportedly emphasised that Cohen’s fund has the best compliance in the business.
But that wasn’t enough to keep him invested.
By itself, one investor leaving the fund won’t necessarily rattle SAC. The issue is the influence this one “well known” investor commands and whether his or her leaving would in itself cause other investors to flee.