Billionaire Steven A. Cohen’s SAC Capital Advisors LP, the hedge-fund firm facing federal insider-trading charges and client defections, cut its U.S. stock-listed holdings by about $2 billion in the second quarter.
SAC held $16.2 billion of U.S.-listed stocks as of June 30, according to a filing yesterday with the U.S. Securities and Exchange Commission. The biggest decreases in its holdings were in EQT Corp. (EQT), which fell in value by $213.8 million as SAC sold 3.32 million shares, and Sirius XM Radio Inc. (SIRI), which shrank by $163.7 million as the firm sold 53.2 million shares.
SAC, based in Stamford, Connecticut, was accused by the U.S. government in a July 25 indictment of engaging in an unprecedented insider-trading scheme lasting more than a decade. In an administrative action last month, regulators said Cohen failed to supervise two employees who have been charged with insider trading.
Cohen, 57, has vowed to keep SAC open for business as investors pulled billions of dollars from its funds this year. Remaining clients have until tomorrow to ask to redeem their money for the third quarter. Executives at SAC, which oversaw about $14 billion in net assets at the start of July, expect to end the year with about $9 billion, a person with knowledge of the matter said earlier this week.
SAC was granted approval by a judge last week to continue operating until the insider-trading cases are resolved. The approved plan requires that SAC maintain at least 85 percent of the “aggregate value” of assets owned by the firm’s “entity defendants” as of July 1, and in exchange, allows for the fund to continue its lawful operations. If the assets fall below the specified level in a given month, the fund is required to “replenish” the monies, according to the Aug. 9 order.
SAC’s biggest U.S. stock holding at the end of the last quarter was a 1.6 percent stake in memory chipmaker Micron Technology Inc. (MU), valued at $232.7 million, followed by a 1.5 percent stake in Zoetis Inc. (ZTS), a maker of animal medicines. That stake was valued at $232 million.
Jonathan Gasthalter, a spokesman for SAC at Sard Verbinnen & Co., declined to comment on the filing.
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