According to sources, SAC President Tom Conheeney wrote in an e-mail to the company's employees on June 4 stating that the firm has no plans for staff reduction. Speculations had it that SAC Capital Advisors LP will resort to cutting a number of workers. As stated by same sources, this was after increasing client redemptions were filed with SAC.
Employees at SAC Capital Advisors LP are expecting the same clients who submitted their withdrawal notices for second quarter, to be the same clients who would redeem as much as US$4 billion by next year, according to people familiar with the matter.
The redemption was the result of the intensified probe conducted by the US government at the Stamford. According to statement said by business law professor, Erik Gordon, SAC Capital's Cohen is taking a defiant stance that is making the government more determined to file charges and will make it even harder for him to settle once the matter heats up.
According to a compiled data from Bloomberg, from the start of this year, SAC oversaw US$6 billion for outsiders while founder Steven A. Cohen had US$7.5 billion of his own money in the SAC's funds.
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