WSJ: SAC Capital Advisors LP Braces for US$3.5 Billion Redemptions

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A Wall Street Journal report stated that hedge fund giant, Steven Cohen, is faced to give outside investors US$3.5 billion redemptions. A SAC spokesman; however, refused to comment on said report. Investors were given a deadline to submit their redemption notices this Monday.

Outside investors are estimated to make up US$6.75 billion of the company's assets. During the first quarter, investors were said to put a US$1.7 billion redemption notices and increased to several billions more redemptions in the second quarter.

It was estimated that US$3.5 billion was to be put on hold, the outflows would mean the remaining outside capital of the company would remain at a little more than half of previous levels. This was according to WSJ, which also stated that Cohen has about US$8 billion of his personal money invested in SAC Capital.

The roughly estimated US$6.75 billion includes outside investor's money that sum up to US$500 million for the company's recently set up reinsurance firm, the SAC Re.

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Steven Cohen, SAC Capital Advisors LP

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