Breaking News from CNBC's Kate Kelly: SAC Capital Up About 5% YTD Through April
When: Today, Friday, May 3rd
Where: CNBC's "Fast Money"
Following is the unofficial transcript of breaking news from CNBC's Kate Kelly on "Fast Money." Here is link to the embeddable video: http://video.cnbc.com/gallery/?video=3000166128. All references must be sourced to CNBC.
KELLY: HEY MELISSA. SAC CAPITAL THE CLOSELY WATCHED HEDGE FUND JUST OUT WITH THEIR APRIL RETURNS. FOR THE MONTH OF APRIL THEY WERE UP ABOUT 1% AND THAT BRINGS THEM YEAR-TO-DATE FOR EXTERNAL INVESTORS TO ABOUT 5.2% OR 5.3% IN SOME CASES DEPENDING ON THE TERMS FOR THEIR MAIN FLAGSHIP FUND. SO THAT'S NOT AS STRONG AS THEIR HISTORICAL PERFORMANCE TENDS TO BE AT LEAST RELATIVE TO THEIR PEERS AND IT'S CERTAINLY AN UNDERPERFORMANCE OF THE MARKET. IT ALSO RAISES QUESTIONS ABOUT WHETHER SAC IS KEEPING CASH ON THE SIDELINES. AS YOU KNOW MELISSA THEY HAVE A REDEMPTION DEADLINE COMING ON MAY 15TH. THERE ARE A LOT OF CONCERNS ABOUT THE LEGAL ISSUES FACING THEM AND WHETHER OR NOT STEVE COHEN IS GOING TO BE CHARGED IN CONNECTION WITH THESE ONGOING INSIDER TRADING CASES. THERE MAY BE SOME CLARITY ON THAT AT THE END OF JULY BUT AT THIS POINT INVESTORS REMAIN A LITTLE BIT NERVOUS AND I'VE HEARD THAT SAC MAY BE KEEPING EXTRA CASH ON THE SIDELINES IN ANTICIPATION OF REDEMPTIONS, MELISSA, SO THAT MAY BE A FACTOR IN SORT OF DIMINISHING THE RETURNS A LITTLE BIT IN THE SENSE THAT THEY HAVE LESS CAPITAL TO PUT AT WORK AND LEVERAGE. BUT UNCLEAR, UNCLEAR AS TO WHAT WENT WRONG FOR THEM IN APRIL.
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