Steve Cohen of SAC Capital Advisors is officially closing
his flagship fund, beginning August 1.
It is being called a soft close, but the
distinction from a hard close is not obvious. It will no longer
accept additional money from new investors or existing
Earlier reports suggested he was mulling some sort of
A spokesman for the firm declined to comment.
I love it, proclaimed one SAC investor, who
prefers his funds not grow too large, especially from hot money
that tends to bail out of funds in general at the first whiff
Growing assets for growth sake has never been a major
priority for Cohen. At year-end, he ran $12 billion, which
placed him 34th on IIs Hedge Fund 100 list, down from
number 27 the prior year. He currently manages $14 billion,
shaking off recent headlines linking former employees to
In fact, so far this year Cohen is way outperforming the
largest funds. SACs flagship fund is up 10 percent while
many of the most famous multistrategy funds are losing money,
including funds run by luminaries such as Paul Tudor Jones II,
Bruce Kovner, and Louis Bacon.
In contrast, in the first half of this year, the $24 billion
Brevan Howard Fund was up less than 4 percent, $23 billion
Baupost was up less than 3 percent, $20 billion Highbridge
Capital Corp. was up a little more than 1 percent and $19.6
billion OZ Master Fund was up 3.3 percent.
Meanwhile, several funds run by John Paulson whose
firm manages a total of $36 billion were down in the
upper teens in the first half.
Further proof that many hedge fund managers may have large
cojones when they are trading, but that size does not matter
when it comes to performance.