How Sad Will SAC Capital's Redemption Song Get?

Michael Steinberg, SAC Capital Advisors LP fund manager, exits federal court in New York, on March 29, 2013 Photograph by Jonathan Fickies/Bloomberg

As the June 3 investor-withdrawal window comes and goes, early indications suggest that SAC Capital may look very different by the end of the year. There could be as little as $1 billion of outside client money left in the fund after today’s redemption deadline, according to Bloomberg News. The only money Cohen can count on at this point is his own, which, at $7.5 billion, is an enormous sum but would be only a shadow of what was once one of the mightiest trading forces on Wall Street. The most significant sign of what is to come may have been the decision by Blackstone Group, SAC’s largest outside investor, to redeem close to $400 million, the majority of its investment with the firm.

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