As you may have heard, SAC Capital is facing some legal trouble at the moment. In addition to the nine current or former employees who have “been linked to insider trading while working at the firm, including four who have pleaded guilty to crimes,” it’s apparently not out of the realm of possibility that the feds will go after founder Steve Cohen on RICO charges. In light of all that, it’s not so shocking to hear that some clients are contemplating submitting redemption requests for the June 3 deadline, on top of the $1.7 billion investors requested to pull earlier in the year. Then you have Ed Butowsky, who is 1. Thinks now more than ever is the time to double down on the Big Guy and 2. Can’t wrap his mind around the notion that investors would look at SAC and see anything but a surefire win.
“I’m thinking about putting more money with him,” said Ed Butowsky, managing director at Chapwood Capital Investment Management, who manages $1 billion in client money. The Dallas-based adviser did not say how much his wealthy clients have invested with Cohen’s SAC Capital Advisors, but said the figure tallies into the tens of millions. “Stevie Cohen is the Michael Jordan of hedge fund managers,” Butowsky said, comparing the billionaire trader’s success in the markets to the feats of the legendary professional basketball star. “I’d be a fool to take out money.”
Also firmly on Team Steve is Anthony Scaramucci, who had this to say to Dealbook: “A lot of guys, when bombs are going off, you figure out very quickly who your friends are in the trenches. Most friends run from bullets, but your best friends run toward them. I have enormous amount of respect for the guy, and I think he’s misunderstood.”