REPORT: SAC Investors Want Their Money Back Now, And That's Not OK With Steve Cohen

Some investors in SAC Capital — Steve Cohen’s beleaguered hedge fund facing insider trading indictments — want to pull their money now, fearing the government will freeze assets.
But Bloomberg is reporting the $US14 billion fund told clients that final payments will be made at the end of the year as usual, despite some investor pleas to recoup all of their money before then.

SAC has tried to keep a “business as usual” mentality, despite the highly-publicized investigation.

But the numbers tell another story. SAC execs think all outside investor money could be gone from the firm by the beginning of 2014 (from Bloomberg):

SAC started the year with $US15 billion of assets, about $US6 billion of which belonged to outsiders. As insider-trading probe against the firm intensified, clients redeemed more than $US3 billion in the first half of 2013, which is being returned over the course of this year. SAC’s executives have said they expect the firm to start 2014 with about $US9 billion in assets and that virtually all outside investors will be gone by then, according to people familiar with the firm.

At least 11 former or current SAC employees have been tied up in the investigation, Bloomberg reports.

Read the full report at Bloomberg>

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