Magnitude Capital, a multi-strategy hedge fund headed by founding partners James Hall and Benjamin Appen will redeem some of its investments, according to report from Reuters.

Magnitude Capital

Magnitude Capital Will Submit A Notice Of Redemption:

The hedge fund started pulling out its money from SAC Capital Advisors in the first quarter. Magnitude Capital will submit a notice of redemption for the second quarter amid the intensified investigation of the government related to the insider trading activities of SAC Capital Advisors. The deadline for the second-quarter redemption is on Monday, June 3.

Magnitude Capital Plans:

According to sources familiar with the issue, Magnitude Capital plans to complete the withdrawing its investments from Steven Cohen’s hedge fund by the end of the year.

Aside from Magnitude Capital, other outside investors already announced their intention to pull out their money from SAC Capital Advisors.

We previously reported that The Blackstone Group L.P. (NYSE:BX) plans to redeem $400 million from Cohen’s hedge fund. Blackstone is pulling out more of its investments than expected this month due to increasing concerns about the future of SAC Capital Advisors.

In December, we reported that The Blackstone Group L.P. (NYSE:BX)’s asset management unit agreed to keep $550 million of its investments with the embattled hedge fund. At that time, Titan Advisors decided to redeem its investments from SAC Capital Advisors.

Ironwood Capital Management also submitted its notice to redeem its investments from SAC Capital.

Two days ago, we reported that a fifth executive at SAC Capital Advisors received a subpoena to testify before a grand jury in connection with the government’s probe on the hedge fund’s insider trading activities involving the stocks of Wyeth Limited (BOM:500095) (NSE:WYETH) and Elan Corporation, plc (NYSE:ELN).

The hedge fund’s portfolio manager, Anthony Vaccarino joins three other executives, president Tom Cinheeney, chief operating officer Solomon Kumin, and compliance head Steve Kessler in testifying before a grand jury.

Cohen also received a subpoena last week. It is believed that he will assert his constitutional right for self-incrimination. Cohen is also contemplating closing down SAC Capital Advisors and opening a family office to manage his personal funds. He has $9 billion investments in his fund.