The Tide Turns: SAC Gets Redemption Request From Major Investor

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Tue, 05/31/2011 - 09:27 | 1324976 Manthong
Manthong's picture

SAC getting the sack.

Tue, 05/31/2011 - 09:34 | 1324988 GeneMarchbanks
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I bet Tyler will be posting this story with a different hedge fund name over and over and over for like... 4-5 more years. At least.

Tue, 05/31/2011 - 09:44 | 1325013 firstdivision
firstdivision's picture

While I do think that there is plenty of shady trades that were executed at SAC (sorry, but that midas touch was a little too golden IMO), I do believe that SAC is being unfaily singled out.  It is more of an industry problem, than a firm problem.  Washington just wants to let one party swing at the end of a rope (in the same way LEH was left to hang themselves), while the others continue to opporate with impunity, but with less competion now.  Washington will tout the destruction of SAC as a warning to other firms, when in reality it was just a way to have capital move to a fund that is more friendly with Washington.  I guess Steve forgot to enlarge his political donations as other managers did. 

Tue, 05/31/2011 - 10:03 | 1325107 Dolemite
Dolemite's picture

Smart money shorting this rally?

Tue, 05/31/2011 - 10:06 | 1325125 Careless Whisper
Careless Whisper's picture

A Senator who won an award from the National Whistleblower Center is someone you might want to take serious.


Tue, 05/31/2011 - 10:24 | 1325188 Coldfire
Coldfire's picture

SAC “has the number one compliance department in the industry.”


Tue, 05/31/2011 - 10:28 | 1325193 andrew123
andrew123's picture

Tyler, any idea how sac did last quarter, or what their net long exposure is?

Tue, 05/31/2011 - 10:35 | 1325226 spanish inquisition
spanish inquisition's picture

Been following the fraud at here and at Deep Capture the last couple of years. Looks to me like the corruption rabbit hole is an endless loop shaped like an 8.

Tue, 05/31/2011 - 10:35 | 1325227 Smiddywesson
Smiddywesson's picture

Maybe SAC was getting their trades from Congress and they forgot to tip

Tue, 05/31/2011 - 11:52 | 1325531 Growyourownfood
Growyourownfood's picture

The whole industry has known for a decade how SAC makes their money. It was regularly discussed and joked about. No surprise here

Tue, 05/31/2011 - 14:20 | 1325997 Cvillian
Cvillian's picture

+1.   It would be funny if it weren't so true

Tue, 05/31/2011 - 14:31 | 1326017 swissbene
swissbene's picture

congrats to ZH for helping to facilitate change.  hopefully more pressure will build against antisocial criminals [alleged].

an earlier SAC thread contained sentiment that corruption is too large/entrenched to expect any change.  such belief is essentially self fulfilling -- so potentially dangerous.

this example reinforces the necessity and efficacy of civic engagement.  many thanks for the important reporting and discussion here.

for reference:

Tue, 05/31/2011 - 14:45 | 1326073 PulauHantu29
PulauHantu29's picture

Watch when money markets begin freezing assets again:

"Marketwatch is reporting that money market fund Primary Fund  (RFIXX) is freezing redemptions for seven days starting Tuesday, September 16.  Its $785 million holding of Lehman Brothers Holdings debt has been valued at zero. As of 4 p.m., the value of the fund's share is 97 cents.  Presumably, investors who have money in the fund will not be able to withdraw it until the freeze has been lifted.  It's unclear what the net asset value will be at that point.  In most cases, the parent company of the fund injects cash or assets to bring the value back to $1 per share. "

My assets were actually "frozen" for several weeks. I never trusted any money market funds again. Once burnt ok...twice is to be a Fool!

Tue, 05/31/2011 - 18:19 | 1326793 bugs_
bugs_'s picture

major investor gets the word on the qt

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