Steve Cohen’s SAC Capital Advisors is the latest hedge fund to cater to investors’ desire for greater liquidity. The firm recently told shareholders of its flagship SAC Capital International fund that they can redeem their capital on a quarterly basis beginning in June. Additionally, the fund is being opened to new money.
Previously, investors in the fund were subject to a three-year lockup. But shareholders became uneasy and wanted greater flexibility when SAC Capital International lost 18% in 2008.
New investors will pay SAC’s historically high fees: 3% for management and 50% for performance and will be subject to a 25% individual investor-level gate (but no fund-level gate).