Breaking News from CNBC's Kate Kelly: SAC Tries To Reassure Staff
WHEN: TODAY, WEDNESDAY, JULY 24, 2013
WHERE: CNBC'S "STREET SIGNS"
Following is the unofficial transcript of breaking news from CNBC's Kate Kelly. Following is a link to the video of the news on CNBC.com: http://video.cnbc.com/gallery/?play=1&video=3000185470.All references must be sourced to CNBC.
KATE KELLY: BRIAN THANKS SO MUCH. SO IN THE WAKE OF REPORTS THAT A DEVASTATING CRIMINAL INDICTMENT COULD HAPPEN AS EARLY AS THIS WEEK FOR THE FIRM SAC CAPITAL THE HEDGE FUND THAT HAS BEEN INVESTIGATED FOR A NUMBER OF YEARS. THE SAC MANAGEMENT IS TRYING TO REASSURE THE STAFF AND TODAY ISSUED AN EMAIL THIS MORNING IN FACT SAYING "THE FIRM WILL OPERATE NORMALLY AND WE HAVE EVERY EXPECTATION THAT WILL BE THE CASE GOING FORWARD." THAT'S FROM A MORNING EMAIL FROM PRESIDENT TOM COHNEENEY SENT OUT TO THE ENTIRE STAFF. THEY OTHER ISSUE THEY ARE TRYING TO LET PEOPLE KNOW ABOUT IS THAT THEIR PERFORMANCE HAS BEEN KIND OF SLOW AND STEADY AND THEY'RE NOW UP ABOUT 10% THAT'S THROUGH MID-JULY. FOR THE FIRST PART OF JULY THEY WERE UP 1.6%BUT BASED ON THE GAINS THEY MADE IN PRIOR MONTHS OF THE YEAR THAT GETS THEM TO ABOUT 10 AND THEIR AUM WHILE REDUCED IS STILL ABOUT $14.2B DOWN FROM $15B IN THE BEGINNING OF THE YEAR. NOW REMEMBER THEY'VE HAD BILLIONS OF DOLLARS IN INVESTOR WITHDRAWALS SO FAR THIS YEAR BUT THAT MONEY FLOWS OUT GRADUALLY THROUGH THE COURSE OF MULTIPLE QUARTERS SO WE ARE NOT GOING TO SEE THE FULL IMPACT OF IT ON THE AUM BRIAN UNTIL CLOSER TO THE END OF THE YEAR. SO THEY'RE KEEPING SPIRITS UP AS THEY AWAIT FOR MORE CONCRETE NEWS IT SEEMS.
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