Report: SAC Capital bracing for investor withdrawals

As scrutiny mounts over trading activities at SAC Capital Advisors L.P., analysts expect the firm’s clients to pull funds en masse by Monday evening’s quarterly deadline for withdrawal requests.

The Stamford hedge fund firm is bracing for investors to request the redemption of most of the remaining $4 billion in outside funds under management, according to multiple published reports.

Earlier this year, investors requested the withdrawal of $1.68 billion in funds ”“ equal to about a quarter of all outside investments managed by SAC Capital. Investments by founder Steven A. Cohen and the firm’s employees reportedly accounted for $9 billion of the $15 billion in total funds managed by SAC Capital at the start of 2013.

In May, Cohen and four senior SAC executives reportedly received subpoenas to testify before a grand jury in connection with the Justice Department’s ongoing insider trading probe. Cohen is not expected to testify, and to instead assert his constitutional right against self incrimination. Shortly after the subpoenas were issued, SAC Capital told its investors that it was no longer fully cooperating with prosecutors in their investigation.

To date, neither Cohen nor SAC Capital have been charged with any wrongdoing. However, at least nine current or former SAC employees have been charged in connection with alleged insider trading schemes, with four pleading guilty to involvement.