Breaking News from CNBC's Kate Kelly: SAC Will Allow Investors To Redeem Money over Course of Two Quarters, Not Three
WHEN: TODAY, FRIDAY, APRIL 26TH
WHERE: CNBC'S "SQUAWK ON THE STREET"
Following is the unofficial transcript of breaking news from CNBC's Kate Kelly. All references must be sourced to CNBC.
KATE KELLY: SAC CAPITAL THE EMBATTLED HEDGE FUND FACING CONTINUING LEGAL HEADWINDS HAS OFFERED INVESTORS FOR THE SECOND TIME HERE A CHANCE TO FACE MORE RELAXED CONDITIONS FOR REDEEMING ALL OF THEIR CAPITAL FROM THE FIRM WHEREAS IN THE PAST INVESTORS COULD ONLY GET THEIR CAPITAL BACK OVER THE COURSE OF A YEAR WITH 25% OF THEIR CAPITAL PER QUARTER THAT THEN WENT TO 33% OVER THREE QUARTERS. IT WILL NOW BE 50% IN TWO QUARTERS SO IN OTHER WORDS SAC IS OFFERING INVESTORS AN EASIER WAY TO STAY WITHIN THE FIRM AND STILL GET THEIR MONEY BACK RELATIVELY QUICKLY IF THEY CHOOSE THE REDEEM. THIS OF COURSE COMES AFTER THE $15 BILLION HEDGE FUND LOST $1.7 BILLION OF INVESTOR CAPITAL IN THE FIRST QUARTER AFTER LEGAL ISSUES CONTINUED TO SURFACE AROUND QUESTIONS OF POSSIBLE INSIDER TRADING AT THE FIRM AND WHETHER OR NOT FOUNDER STEVE COHEN, SIMON, WAS PERSONALLY INVOLVED OR NOT.
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