Investors Have Decided To Pull $1.68 Billion From SAC Capital

CNBC's Kate Kelly reports that investors have decided to pull $1.68 billion from Steve Cohen's embattled hedge fund, SAC Capital.

The firm has about $15 billion assets under management, $9 billion of which belongs to Cohen. The rest is outside capital.

Last year, the firm announced that investors had until yesterday to decide if they would pull their money. According to their agreement with SAC, they can pull 25% of their investment per quarter. That means about $660 million will leave the firm in Q1 and the full $1.68 billion will leave the fund by the end of 2013.

To slow the flow of money from the fund, yesterday SAC told investors that they could decide whether or not to keep their money with the fund until May and still redeem their money in thirds, rather than quarterly increments.

This skittishness all stems from federal investigations into SAC's trading practices. Since 2009, 6 former SAC portfolio managers or traders have been convicted or admitted to insider trading.

Now the government is investigating Mathew Martoma, another former SAC portfolio manager, in the most lucrative insider trading case in history. SAC's founder and CEO, Steve Cohen, was mentioned in the complaint but has not been accused of any wrongdoing.

SAC was up 2.5% net of fees in January and are in the black so far this month.

Kelly also reports that while some investors are pulling their money, Steve Cohen and other insiders adding capital. Additionally, if SAC continues its historic performance, making about $270 million a month gross of fees, it can make up for the money spilling out of the fund.