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From Precy Dumlao, Opalesque Asia – Blackstone Group, the largest outside investor in SAC Capital Advisors, is to pull out its money from the firm, Reuters reported.

Reuters, citing a May 21 letter from pension consultant Russell Investments to clients, said that Blackstone had informed SAC Capital of its intent to "fully redeem" an important part of the estimated $550m it has invested with the $15bn hedge fund firm.

Blackstone reportedly sent the notice to SAC Capital sometime before May 15 as it was concerned over the ongoing insider trading probe against SAC Capital and its executives that might even involve Cohen himself. The redemption affects only client money invested in SAC’s fund of hedge funds, the letter notes.

Blackstone was said to be confident to receive 100% of its money from SAC Capital before the year ends. It was not clear however if Blackstone had advised its other clients which have investments in separately managed accounts at SAC Capital, to withdraw their money from the hedge fund firm or not.

In December’12, three sources told CNBC Blackstone was then in no rush to redeem money from the Stamford, Connecticut-based hedge fund. Blackstone has had at least three discussions with SAC's executives about the......................

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