SAC Capital To Allow Some Early Redemptions

Bloomberg is reporting that SAC Capital will permit investors to withdraw money early from its multistrategy fund hedge fund. This move by SAC Capital contrasts with moves from rivals such as Fortress (NYSE: FIG) and Tudor which have limited or halted investor redemptions after being inundated by them.

SAC told investors in SAC's Multi-Strategy Fund, that if they want their money returned to them in the first half of 2009, they must notify the firm this month. Typically, clients cannot take out any money for three years after their first investment; after that, they have to keep their remaining cash in the fund for one-year periods.

“We are under no obligation to make any such distribution and may, in our discretion, determine not to make one,” SAC said in the letter signed by Lisa Alexander, on behalf of the board of the Multi-Strategy Fund. Bloomberg obtained a copy of the letter, and it said a SAC spokesman declined further comment.

The SAC fund has lost 13% this year through November, according to investors.

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