Jonathan Gasthalter, a spokesman for SAC Capital at Sard Verbinnen & Co., declined to comment on a possible deal, as did Ellen Davis, a spokeswoman for U.S. Attorney Preet Bharara. Neither Cohen nor SAC Capital has been accused of wrongdoing by the U.S. attorney.
Cohen was sent a subpoena last week to appear before a federal grand jury, a second person with knowledge of the matter said. After Cohen was summoned, SAC Capital told clients in a May 17 leter that it was no longer cooperating unconditionally with the government. The firm expects “substantially more clarity” in coming months, according to the letter, portions of which were provided to Bloomberg News.
A five-year statute of limitations will expire at the end of July for the U.S. Attorney in Manhattan to criminally charge Cohen with illegally selling shares of two stocks based on tips received by Mathew Martoma, a former fund manager at his firm. The Martoma case was the first to link Cohen directly to alleged insider information. Martoma has pleaded not guilty.
The U.S. Securities and Exchange Commission, which won a record $602 million civil settlement with SAC Capital over the trades in March, also must move by July to sue Cohen personally.
Redemption Requests
Investors asked to pull $1.68 billion from the firm as of the first quarter. Some clients of Blackstone Group LP, one of Cohen’s biggest investors, asked the manager to put in redemption notices for the second quarter, said a person familiar with the matter. SAC Capital is talking with Blackstone about keeping some money with the firm, said the person, who asked not to be named because the fund is private.
Christine Anderson, a spokeswoman for New York-based Blackstone, declined to comment. The fund had about $550 million invested with the firm at the beginning of the year.
Cohen accounts for $7 billion of the money invested in SAC funds, according to data compiled by Bloomberg, meaning that a Cohen-run family office would still be bigger than many hedge funds. He has returned about 30 percent a year since starting the firm in 1992, one of the best records in the industry’s history.