Published July 02, 2013
June was a tough month for hedge fund billionaire Steven A. Cohen on the insider trading investigation front, but it did not show up in the performance of his $15 billion SAC Capital Advisors, which posted a 1.5 percent gain, according to an investor familiar with the numbers.
For the year, that SAC Capital main fund is up about 8.25 percent after fees, the source said. SAC charges some of the highest fees in the $2.2 trillion hedge fund industry.
In June the average hedge fund lost about 2.1 percent, according to early estimates by Bank of America Merrill Lynch. That is a sharper decline than the broader Standard & Poor's 500 stock index's roughly 1.7 percent drop. The S&P was up 12.6 percent for the first six months of the year.
SAC Capital's June performance comes not only while investors in the fund were asking to redeem about $3 billion because of the investigation but also during a tumultuous period for global bond and stock markets.
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.
Some investors with the fund have privately worried that the investigation, which is increasingly focusing on Cohen, might distract the manager and his more than 115 portfolio managers.
In May, U.S. prosecutors sent a grand jury subpoena to Cohen seeking his testimony in connection with the investigation. Cohen indicated to authorities that he would assert his constitutional right not to testify and it is believed prosecutors never sought his testimony, said a person familiar with the inquiry.