SAC redemptions grow, as Magnitude Capital joins in
By Katya Wachtel
NEW YORK (Reuters) - Investor redemptions from Steven A. Cohen's SAC Capital Advisors continue to mount, with Magnitude Capital emerging as the latest outside investor asking to get money back from the $15 billion hedge fund.
Magnitude Capital, a fund of hedge funds that manages $3.1 billion of client money, began redeeming funds in the first quarter of this year and intends to submit another withdrawal notice for the second quarter, according to a person with knowledge of the investment.
Cohen's firm also recently received withdrawal requests from two large institutional investors, Blackstone Group LP (BX.N: Quote) and Ironwood Capital, as an insider trading probe focusing on Cohen's firm moves forward.
SAC Capital's second-quarter redemption deadline is Monday June 3.
Magnitude's investors will have their money back from Cohen's hedge fund by the end of the year, according to that person and another person familiar with the investment.
Several calls to partners at Magnitude Capital were not returned. A spokesman for SAC Capital declined to comment.
It was not immediately clear why Magnitude had decided to take back its money. The amount of money the firm has with SAC Capital also is not known.
Blackstone, which is the largest outside investor in Cohen's fund, has decided to redeem a significant portion of its roughly $550 million allocation to SAC, according to a letter from pension consulting firm Russell Investments, which Reuters earlier reported on. Continued...