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Gasparino: SAC Plans 'Soft Reopen' of $14B Fund

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  • Description

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

  • Duration 3:12
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A significant change coming to SEC capital it's all in an effort to soften the blow the results for wide ranging insider trading probe -- Caspian joins us with exclusive details.

Right it's.

Not necessary the probe but the impact of probes haven't on the fund which is major redemptions likely to -- to likely to come on Valentine's Day from and I understand the fourteenth of February.

Is when you could start demanding your money back.

And here's -- this -- he's gonna do to try to soften that -- people think could be anywhere between one and two billion dollars I don't know where they get those numbers.

We know it's going to be a lot.

Obligate plan on doing is a sloth re opening of the major SEC fund the fourteen billion dollar fund.

That's been closed since 2011 -- there will be a soft reopening meaning some investors from what I understand will be able to put money.

Back in you could get money back into the fund and money back into the fund who -- these investors.

From what I understand it's it's a limited number they're very high net worth people their best customers.

They are going to be able to put more money and.

This is that this is that this is essentially a step to basically soften the impact when you have money coming out they wanna put some money coming in they want to keep that fourteen billion dollars.

On the management how much money will be allowed to be putting -- that do they will allow people to put in the people that they select.

From what I understand it's good -- it all depends on how much money comes out when will they know how much money comes out that will be determined.

In at the end of march from from what I understand because it's sort of a star.

Apparently could start demanding money out now but the -- but what's what's what's known as a liquidity schedule is is arranged.

You won't know the deeds will be the impact until about a month and a half way so on and so around march 31 they're going to be telling people who they wanna put money and who who they believe qualify as their their best customers from what I understand.

You could put money and and here's how much money yet you can't put I would say this is a significant change for SEC capital it was pretty big when they closed a fun you know a lot of a lot of a lot of companies when they grow to fourteen billion dollars.

You know you did -- PO since double edged sword you know you want more money in because you want the fees rights to SEC capital takes three and fifty.

Right wow 3%.

On management -- 50% of the profits they still returned.

From I understand since 199626%.

After those fees and -- investigation and -- -- market averages but.

My point is that people would like to put more money in this.

They stopped in 2011.

Now they're going to be able to put more money in.

And the reason why doesn't want to soften the blow these redemptions I think it's a fairly stupid story it's an interest -- step by -- You know my view is you know small funds do better.

But clearly he likes the money covenant he likes to be running fourteen billion and we'll see how much money comes out quite as -- we won't know exactly how much money is flowing out of this thing I guess.

I guess we'll have some idea by people like -- and on on the fourteenth.

But they won't know the full impact until the in the march and that's -- from what I understand this soft reopening on everybody but but.

Top top clients are -- will put some more money into it.

-- Try to become evident stupid -- on soft but I failed miserably obviously.

Trying to guess thanks so if we don't know -- you clearly do yes it is quarter.

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