SAC Capital won't fully cooperate with government: letter

Fri May 17, 2013 6:04pm EDT
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By Emily Flitter and Katya Wachtel

NEW YORK (Reuters) - Steven A. Cohen's hedge fund SAC Capital Advisors told investors on Friday it would no longer cooperate "unconditionally" with the U.S. government's insider trading investigation.

In a brief letter to investors, the $15 billion hedge fund did not elaborate but said it believes the next few months will be critical in the investigation.

The firm said that "over the coming months there will be more clarity about the outcome of these matters."

The letter, which an investor in the fund who did not want to be identified read to Reuters over the telephone, also said while SAC believes in transparency, it may not be able to give frequent updates to investors.

"In the past we have tried to be as transparent as possible," the fund said. But SAC Capital added that going forward it may "need to keep details confidential."

SAC's letter to investors comes a few weeks before outside investors have to notify Cohen and his fund whether they intend to redeem some of their money before the end of the second quarter on June 30. The hedge fund extended the deadline for submitting redemption requests to June 3 from May 16.

In the first quarter of this year, outside investors submitted notices to redeem up to $1.7 billion.

The investor in the fund said he was not concerned by SAC's announcement. He added that the fund is up 5.96 percent so far this year.   Continued...

An exterior view of the headquarters of SAC Capital Advisors, L.P. in Stamford, Connecticut, in this picture taken December 13, 2010. REUTERS/Mike Segar