Billionaire hedge fund manager Steven Cohen is losing the financial support of Blackstone Group, the largest outside investor in his embattled SAC Capital Advisors, which is yanking much of its client money, according to a letter reviewed by Reuters.
The news agency reports that a pension consultant, in a May 21 letter to clients, said Blackstone has notified Cohen that it intends to 'fully redeem' a significant portion of the roughly $550m the investment firm has invested with the $15bn hedge fund.
The letter from pension consulting firm Russell Investments said Blackstone submitted its redemption notice to SAC Capital sometime before May 15 because of ongoing concerns about the insider trading investigation that continues to engulf Cohen's fund.
Blackstone's investment with SAC Capital is through several investment funds known as hedge fund of funds and also through separately managed accounts it maintains for clients.
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