(Corrects name of network in last paragraph of story originally published Feb. 12.)
Feb. 12 (Bloomberg) -- Steven Cohen’s SAC Capital Management LP is opening its main hedge fund to new investments after almost two years as a deadline for clients to redeem approaches, according to a person with knowledge of the matter.
The $14 billion SAC, whose clients have until Feb. 14 to ask to pull money from the fund, isn’t actively marketing it, said the person, who asked not to be named because the firm is private. The fund has been soft-closed to new investments since mid-2011, meaning it has selectively taken in money, mostly to accommodate current clients, according to the person.
The U.S. Securities and Exchange Commission told SAC in November that it is considering pursuing civil fraud claims related to alleged insider trading in two drugmakers by a former SAC portfolio manager. Prosecutors say Cohen, 56, discussed the stocks with the trader, the first time government officials have linked him to a transaction at the center of an insider-trading case.
This week’s deadline applies to clients asking to pull money from the fund for the quarter ending March 31. SAC executives have told employees that it expects investors to request redemptions of about $1 billion, a person familiar with the Stamford, Connecticut-based firm said last month. SAC allows investors to take out 25 percent of their capital in a quarter, meaning the withdrawals from the fund would be about $250 million for March 31.
Jonathan Gasthalter, a spokesman for SAC, declined to comment on the reopening, which was reported by Fox Business Network earlier today.
--Editors: Josh Friedman, Sree Vidya Bhaktavatsalam