By Matthew Goldstein and Svea Herbst-Bayliss
The WSJ is out today with a big story saying Stevie Cohen and SAC Capital are bracing for up to $1 billion in redemptions, or roughly 16 percent of the $6.3 billion it manages for outside investors. That’s a lot of money but sources are telling us redemptions will likely come in lower than that—think more in the $500 million range.
And more important, no matter what the figure is, don’t look for it to put much crimp in Cohen’s operation.
The deadline for submitting redemptions is Feb. 15, so there is still plenty of time for outside investors make a decision about sticking around or leaving. And even if an investor puts in a redemption notice now, those requests to withdraw money can get pulled at the last minute if the investor has a change of heart.
So far, the most notable redemption request comes from Titan Advisors, the investment fund run by George Fox, a friend of Cohen. Titan, as we noted has been pulling money from big funds for a while, so the decision may be motivated as much by the latest headlines in the insider trading investigation as much as a strategic shift by the investment firm.
Titan, which had been with Cohen for many years, is believed to have had between $75 million and $150 million with SAC Capital, sources say. Titan hasn’t yet sent investors a year end letter formally explaining its rationale for bailing on SAC Capital.