Hedge fund that manages SAC money had tough year through April

Fri Jun 7, 2013 2:38pm EDT
 
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By Katya Wachtel

NEW YORK (Reuters) - As billionaire investor Steven A. Cohen deals with a spate of redemptions out of his own hedge fund, another firm in which his SAC Capital Advisors has money saw returns plummet in the first four months of the year.

Adams Hill Capital, run by former SAC equity portfolio manager Andrew Schwartz, was down 8.34 percent to the end of April, according to an investor note reviewed by Reuters.

In the same period, the S&P 500 stock index .SPX rose more than 12.7 percent and hedge funds on average gained about 4.6 percent, according to hedge fund tracking firm eVestment.

Adams Hill lost about 7.4 percent alone in April, when the stock market gained 1.9 percent. It could not be determined whether the hedge fund made up ground in May.

Adams Hill, along with another firm called Scopus Asset Management, is listed on regulatory filings as an adviser to an SAC Capital portfolio, meaning it manages a dedicated pool of money for Cohen's hedge fund.

It is not uncommon for large hedge funds like SAC Capital to employ other advisers, also known as sub-advisers, to manage some of a firm's money, especially if a manager is impressed with the outside firm's track record.

Adams Hill and SAC did not immediately respond to a request for comment.

Adams Hill, which in total oversees roughly $425 million in assets according to the April investor note, manages more than $100 million of SAC's money, according to a person familiar with Schwartz's firm.   Continued...

 
Hedge fund manager Steven A. Cohen, founder and chairman of SAC Capital Advisors, responds to a question during a one-on-one interview session at the SkyBridge Alternatives (SALT) Conference in Las Vegas, Nevada May 11, 2011. REUTERS/Steve Marcus