“SAC Capital Advisors LP is bracing for investors to pull an estimated $3.5 billion from the firm, according to people briefed on the matter, as the hedge-fund giant continues to battle fallout from an intensifying insider-trading probe.
The anticipated withdrawals, which the people described as preliminary estimates that were still in flux, come in response to a quarterly deadline Monday for SAC clients to ask for money back. The firm received withdrawal requests for $1.7 billion in the first quarter.
If the estimates hold, the outflows would represent more than half of the firm’s remaining outside capital and bring the total that investors have sought back this year to more than $5 billion.
The withdrawals illustrate the worsening toll the government’s investigation is having on the Stamford, Conn., firm, which for 20 years has churned out huge gains. Its founder, Steven A. Cohen, is one of Wall Street’s most high-profile investors.
The majority of the firm’s roughly $14 billion in assets belong to Mr. Cohen or the firm’s employees….”Twitter