In order to regain the confidence of investors, bankers, and so on, "Clients of SAC Capital Advisors LP moved to pull $1.7 billion from the hedge-fund firm, or roughly a quarter of outside investors' money, as an insider-trading investigation weighed on confidence in the money manager". However, some investors decreased because they are waiting if this policy will be consistent over the time.
The following article explains the strategy of the SAC. What do you think about it? D you think that it is know to do in order to regain the confidence of the investor?
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I feel like investors are pulling their money out because they see how great the economy is right now and do not want to risk it any longer. I am also skeptical about the 30% in annual returns, so hopefully this probe will find out the truth of what SAC is doing and if it is legal or not.
ReplyDeleteI agree with you Rohitha, 30% is a very high number and to achieve that consistently is remarkable if done legally. It is also true that investors are currently avoiding as much risk as possible, thus with an investigation looming, it makes sense that these investors moved to pull out $1.7 billion.
ReplyDeleteInvestors are already nervous about this and like Rohitha said, they don't want to risk it any longer. They want to wait it out and see if this stays contant. I don't believe 30% in annual returns seems plausible.
ReplyDeleteI also agree with Rohitha that with this gloomy economic and a huge uncertainty ahead, it is not surprising that investors are trying to save their money. 30% in annual returns is hard to achieve legally. Besides, SAC facing civil charges also make investor lose their confidence and skeptical about the returns of their money.
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