SAC Expects Withdrawals of at Least $1 Billion, WSJ Reports

SAC Capital Advisors LP has told employees and business partners that it expects investors to withdraw at least $1 billion from the firm amid the U.S. government’s insider-trading investigation, the Wall Street Journal reported, citing people briefed on the communications.

Outside clients make up about $6 billion of Stamford, Connecticut-based SAC’s $14 billion of assets under management, the newspaper reported. SAC, the hedge fund founded by Steven A. Cohen, has been telling senior employees of the expected redemptions and asking clients whether they plan to pull money, the Wall Street Journal said.

A spokesman for SAC said it is premature to speculate about redemptions, the Wall Street Journal reported. SAC spokesman Jonathan Gasthalter declined to comment when contacted by Bloomberg.

The U.S. Securities and Exchange Commission told SAC last year that it is considering pursuing civil fraud claims related to alleged insider trading in two drugmakers by a former portfolio manager at the firm. Prosecutors say Cohen, 56, discussed the stocks with the manager, the first time government officials have linked him to a transaction at the center of an insider-trading case.

To contact the reporter on this story: Jesse Westbrook in London at jwestbrook1@bloomberg.net.

To contact the editors responsible for this story: Edward Evans at eevans3@bloomberg.net.

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