SAC investor Magnitude to pull money from Cohen's fund in second quarter: source

Another outside investor in Steven A. Cohen's SAC Capital Advisors will ask to redeem money from his hedge fund in the second quarter.

Fund of hedge funds firm Magnitude Capital began redeeming money from SAC in the first quarter and will submit another withdrawal notice for the second quarter, according to a person with knowledge of the investment.

The redemption process for Magnitude will be completed by the end of the year, according to that person and another person familiar with the firm's investment with SAC.

SAC Capital's second-quarter redemption deadline is Monday June 3, which comes as an insider trading probe focused on the firm heats up.

Magnitude joins other outside investors Blackstone Group LP and Ironwood Capital Management, which have requested money back from Cohen's $15 billion hedge fund in the second quarter of the year.

(Reporting by Katya Wachtel; Editing by Gerald E. McCormick)