SAC Capital posts strong June amid market selloff, U.S. probe

Tue Jul 2, 2013 1:29pm EDT
 
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By Katya Wachtel and Matthew Goldstein

NEW YORK (Reuters) - SAC Capital Advisors, the hedge fund firm run by billionaire Steven A. Cohen that has been under intense scrutiny as part of an insider trading investigation, posted a surprisingly strong return in June amid a global market sell-off.

One of SAC Capital's main funds posted a 1.5 percent gain for the month, leaving the portfolio up 8.25 percent for the year after deducting fees, according to an investor familiar with the numbers.

SAC charges some of the highest fees in the $2.2 trillion hedge fund industry.

The firm outperformed both the average for hedge funds for the month and the broader market during a tumultuous period for both global bond and stock markets.

Some investors with SAC have privately worried that the federal government's investigation, which has increasingly focused on Cohen, might distract the manager and his more than 115 portfolio managers.

A sharp selloff in bonds and stocks last month tripped up a number of big-name hedge funds, including Daniel Loeb's Third Point, David Einhorn's Greenlight Capital Management and Ray Dalio's Bridgewater Associates, Reuters has previously reported.

SAC Capital, which notified investors of its latest results late Monday, did not provide any details about what contributed to its performance in June.

In June the average hedge fund lost about 2.1 percent, according to early estimates by Bank of America Merrill Lynch. That compares with a roughly 1.7 percent decline for the broad Standard & Poor's 500 stock index .SPX. The S&P was up 12.6 percent for the first six months of the 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