How to Profit Off SAC Capital’s Potentially Huge Investor Exodus

The legendary Hedge Fund SAC Capital Advisors is preparing for what some insiders are saying could be a huge wave of client withdrawls, major institutional and retail clients could be pulling millions and possibly billions of dollars out of SAC Capital in the month of February.

Why? The SEC has already convicted one of SAC Capital’s ex employees for insider trading, and regulators are intensely scrutinizing all off SAC Capital’s recent and past trades.

Therefore many SAC Capital investors are now weighting the risks of being involved with a hedge fund that could possibly be shut down or heavily fined by the SEC.

SAC Capital with $14 Billion under management would have to sell some of its current stock holdings if a wave of investor redemptions comes to fruition, which many insiders say will happen. The quarterly redemption deadline for investors to pull money out of SAC Capital is February 15th.

To profit off this potential forced selling, I am going to list the biggest positions SAC Capital currently owns:

1) Buffalo Wild Wings (BWLD): As of last month SAC Capital owned 930,000 shares or more than 5% of this stock, remember if investors pull their money out of SAC in February, SAC will have to sell many or not all of its stock holdings to raise cash in order to meet its investor redemptions. So BWLD could be a great short, if and when these huge investor redemptions hit the fund.