Steve Cohen’s SAC Capital Advisors’ flagship fund is up 12% YTD through the end of November, CNBC’s Kate Kelly just reported on “Fast Money: Half Time Report” moments ago.
That’s much better than the average hedge fund’s performance this year, which is about 2 to 3% YTD returns, Kelly pointed out.
That being said, SAC could possibly face redemptions from investors.
SAC has been put on “watch” by Citigroup, Kelly reported.
Basically, this means the bank is watching what’s going on at SAC and may or may not remove it from its hedge fund platform. Morgan Stanley has also put SAC on watch, according to CNBC.
Last month, former SAC portfolio manger Mathew Martoma was charged in what is believed to be “the most lucrative” insider trading scheme ever. Martoma worked at CR Intrinsic Investors, a subsidiary of SAC.
Martoma has been accused of using negative confidential drug trial info in pharmaceutical companies, Elan Corporation and Wyeth, between the summer 2006 and mid-July 2008.
In the complaint against Martoma, there are several mentions of “Portfolio Manger A.” Cohen was fingered in several media reports as “Portfolio Manager A.”
Last week, SAC held a conference call with investors and Cohen, who opened the call, said he’s confident he acted appropriately.
Cohen has not been charged or accused of any wrongdoing.
During the call, SAC disclosed to clients that the hedge fund had received a Wells Notice from the SEC indicating that SAC could face civil charges.