Opinion

SAC's assets increased despite indictments

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For SAC investors, contemplating a legal assault on the firm is nothing new.

   
   Mathew Martoma (Photo: Bloomberg)
The indictment of former SAC Capital Advisors employee Mathew Martoma and potenitial civil charges against the firm have become the talk of the hedge fund industry. Everyone seems to be asking: will investors pull out?

Not if you judge by previous experience. SAC has prospered despite six people being tied to insider trading while working at SAC and three of them pleading guilty in the past two years. Investors added as much as $1.6 billion in new capital to the flagship SAC Capital Management funds between 2010 and yearend 2011, according to an Absolute Return analysis of assets and performance (SAC stopped