Steve Cohen’s SAC Capital Advisors told employees that it will not transition into a family office despite heavy client redemptions.
Bloomberg Businessweek reported that SAC President Tom Conheeney told employees Tuesday that while the firm does not plan to release a number for the withdrawals, it will remain open to outside investors. SAC is also planning to keep most of its staff.
eVestment reported earlier this week that SAC was expecting an estimated $3.5 billion in redemption requests from investors as the government’s insider trading probe into the firm intensifies. Investors have already requested $1.7 billion in withdrawal requests in the first quarter.
Five SAC executives were subpoenaed last week to testify before a grand jury on charges relating to trades made by the firm regarding drugmakers Elan and Wyeth, as well as computer maker Dell.
Despite the redemptions, SAC has been performing well this year. It manages about $15 billion in assets.