HSBC Said to Advise Wealthy Against More SAC Investments
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HSBC Holdings Plc’s private bank advised clients to not add money to Steven A. Cohen’s SAC Capital Advisors LP amid a U.S. government insider-trading investigation into the hedge fund, according to a person with knowledge of the matter.
The bank made the recommendation to some clients last month after SAC disclosed that regulators may file civil fraud claims against it, said the person, who asked not to be named because the information is private. Stamford, Connecticut-based SAC has told some employees and outside advisers that it expects investors to withdraw at least $1 billion, or 17 percent of the money it manages for outside clients, according to a person familiar with the discussions.