Several of Steve Cohen’s rivals hedge fund firms are expected to benefit following the nearly $3 million redemption requests it received amidst insider trading allegations.
Hedge fund industry investors and analysts told Reuters that large firms that are structured like SAC, including Israel Englander's Millennium Management and Kenneth Griffin's Citadel, would benefit the most from the outflow of capital from SAC.
In addition to the $3 billion withdrawal requests in the second quarter, eVestment previously reported that clients withdrew approximately $1.7 billion in the first quarter. The firm managed about $5.6 billion in outside money as of mid-May.
Five SAC executives were subpoenaed 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.
Neither SAC nor Cohen has been charged with any wrongdoing.
SAC manages about $15 billion in assets.