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Gasparino: Cohen Scrambling to Avert Redemptions

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  • Description

    FBN's Charlie Gasparino breaks down the latest on SAC Capital.

  • Duration 2:53
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Show all right so let's go on to our next controversial segment here and that's Charlie Gasparino.

He has exclusive new detail and Steve Cohen's latest efforts to prevent investors from bolting from high profile hedge fund of course as they -- capital which.

As you know is under scrutiny for insider alleged insider trader violations I hope he took that as a compliment you're controversial -- upset about it.

Well here's -- it -- about Steve -- there's a lot of controversy surrounding him as you know Matthew Moore -- was formed portfolio manager was indicted last week.

In February SEC faces a window of redemption -- -- you could start redeeming shares -- investors and here's what we know.

As easy officials.

-- that the senior officials at the firm are scrambling to prevent massive.

Redemptions from the fourteen billion dollar hedge funds they are currently contacting and holding one on one meetings with large investors.

And basically they're saying listen don't pull out we think we got this under control they're essentially saying that despite everything you've heard that -- criminal charges against more Toma.

Member he's no longer -- -- C capital -- investigation involves Steve Cohen Cohen was.

-- -- opposed by the securities exchange commission a wells notice from the securities exchange commission has been given.

To SEC didn't exist before -- staff -- same.

We may bring charges.

Despite all that they think that Steve Cohen is going to be okay internally they're saying listen we may get a large fine.

We think we we we think we're gonna get a large fine we think we're facing charges.

But we're not gonna be indicted is not going to be a criminal case here so keep your money with us that's what we're doing right now now.

The bottom line is this.

You don't know until February you know investors essentially.

Heat this type of controversies right right idea why would you why would you -- well and I can say earned some some very large.

Investors have put holds on the stock meaning they're telling their investors in the war don't put anymore he's a fund the fund managers don't put anymore money.

But I can also tell you this that Steve Cohen and in these guys are very aggressive and they are out there trying to convince the investment large investors.

To stay with it where they do not I can't tell -- I think.

They're gonna have an issue based on this.

-- and they'll they'll come out after we do this story as -- he was -- you know it's true would meet one on one but we always meet one on one.

These are different one on one meetings this is crisis mode and SEC capital.

They think there's a very good and good very good the likelihood that they're gonna get massive redemptions we should twelve point out that the hedge funds fourteen billion dollars.

Seven billion dollar -- Steve Cohen's own money.

The rest is outside investors fund of funds family -- -- pension funds.

This just chalk on a beach.

And these people get very skittish when and stuff like this happened so we'll have to work look at that February -- -- -- SEC capital.

Will there be massive redemptions.

They are bracing for them -- thought the obvious likelihood and to hold one on one meetings with big investors to prevent that from happening.

I thank you Charlie you're gonna get an -- -- fired up -- a -- iconic drink a lot of we expect.

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