MacFarlane surprises UCLA class, announces contest

LOS ANGELES (AP) — Oscar host Seth MacFarlane is inviting college students to join him on stage at the Academy Awards.

The creator of Fox's "Family Guy" made a surprise appearance at UCLA to announce a contest sponsored by the Academy of Motion Picture Arts and Sciences and MTV that will allow winning college students to appear on the Feb. 24 Oscar telecast.

The contest invites students to submit videos on the academy's Facebook page describing how they'll contribute to the future of film. At least six winners will serve as trophy carriers on the Oscar show, replacing the leggy models who usually perform the duties.

MacFarlane spent 40 minutes leading the undergraduate film and television class at UCLA's Westwood campus on Wednesday as part of MTV's "Stand In" series, which brings celebrities to colleges as guest lecturers.

"In re-imagining what we want the Oscar show to be, we wanted everyone appearing on that stage to feel a deep commitment to film and its legacy, and most importantly, its future," said Oscar telecast producers Craig Zadan and Neil Meron in a statement. "That was the impetus in creating this special honor for young film students who will inspire a new generation to create the films that will be honored in the future."

The contest is also aimed at drawing younger viewers favored by advertisers to the Oscars' aging TV audience. Like UCLA student Abby Smith, who immediately pulled out her smartphone to share the moment on Facebook when MacFarlane appeared before her class.

"Seth MacFarlane is speaking to my film lecture for the next hour," Smith posted. "I'm having a panic attack."

The 39-year-old entertainer urged the aspiring filmmakers and show-runners in the class to make a "commercially viable student film" before leaving school, adding that "Family Guy" was based on his own student film.

And MacFarlane said "Family Guy" could once again become a film. He said he's already come up with a concept for a feature-length movie and promised "it will happen at some point."

MacFarlane cheekily described the Academy Awards as "a crazy little variety show" and said "all I can do is do what I think is funny and most entertaining."

"The Oscars is a tricky venue," he said. "The (hosts) who have not done well, I would classify them as a noble failure, an honorable failure, because at least they were trying something new... If I can do it without torpedoing my career and getting drummed out of the business... All I can do is my very best."

He paused a beat, and added, "Lame (expletive) answer."

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MTV is owned by Viacom Inc.

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AP Entertainment Writer Sandy Cohen is on Twitter: www.twitter.com/APSandy.

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Hockey Coaches Defy Doctors on Concussions, Study Finds

Despite several years of intensive research, coverage and discussion about the dangers of concussions, the idea of playing through head injuries is so deeply rooted in hockey culture that two university teams kept concussed players on the ice even though they were taking part in a major concussion study.

The study, which will be published Friday in a series of articles in the journal Neurosurgical Focus, was conducted during the 2011-12 hockey season by researchers from the University of Western Ontario, the University of Montreal, Harvard and other institutions.

“This culture is entrenched at all levels of hockey, from peewee to university,” said Dr. Paul S. Echlin, a concussion specialist and researcher in Burlington, Ontario, and the lead author of the study. “Concussion is a significant public health issue that requires a generational shift. As with smoking or seat belts, it doesn’t just happen overnight — it takes a massive effort and collective movement.”

The study is believed to be among the most comprehensive analyses of concussions in hockey, which has a rate of head trauma approaching that of football. Researchers followed two Canadian university teams — a men’s team and a women’s team — and scanned every player’s brain before and after the season. Players who sustained head injuries also received scans at three intervals after the injuries, with researchers using advanced magnetic resonance imaging techniques.

The teams were not named in the study, in which an independent specialist physician was present at each game and was empowered to pull any player off the ice for examination if a potential concussion was observed.

The men’s team, with 25 players and an average age of 22, played a 28-game regular season and a 3-game postseason. The women’s team, with 20 players and an average age of 20, played 24 regular-season games and no playoff games. Over the course of the season, there were five observed or self-reported concussions on the men’s team and six on the women’s team.

Researchers noted several instances of coaches, trainers and players avoiding examinations, ignoring medical advice or otherwise obstructing the study, even though the players had signed consent forms to participate and university ethics officials had given institutional consent.

“Unless something is broken, I want them out playing,” one coach said, according to the study.

In one incident, a neurologist observing the men’s team pulled a defenseman during the first period of a game after the player took two hits and was skating slowly. During the intermission the player reported dizziness and was advised to sit out, but the coach suggested he play the second period and “skate it off.” The defenseman stumbled through the rest of the game.

“At the end of the third period, I spoke with the player and the trainer and said that he should not play until he was formally evaluated and underwent the formal return-to-play protocol,” the neurologist said, as reported in the study. “I was dismayed to see that he played the next evening.”

After the team returned from its trip, the neurologist questioned the trainer about overruling his advice and placing the defenseman at risk.

“The trainer responded that he and the player did not understand the decision and that most of the team did not trust the neurologist,” according to the study. “He requested that the physician no longer be used to cover any more games.”

In another episode, a physician observer assessed a minor concussion in a female player and recommended that she miss the next night’s game. Even though the coach’s own playing career had ended because of concussions, she overrode the medical advice and inserted the player the next evening.

According to the report, the coach refused to speak to another physician observer on the second evening. The trainer was reluctant to press the issue with the coach because, the trainer said, the coach did not want the study to interfere with the team.

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Stocks flat; consumer spending falls

Stocks are little changed in morning trading Friday as lawmakers seek to thrash out a budget agreement. The government also reported that consumer spending fell in October.

The Dow Jones industrial average rose six points to 13,028 as of 11:13 a.m. Eastern. The Standard and Poor's 500 was down 0.4 points to 1,415. The Nasdaq composite was down five points to 3,007.

Stocks are slightly higher for the week. The Dow is up 0.2 percent, the S&P 500 index 0.4 percent. The market has fluctuated between gains and losses in recent days as news and comments filtered out from the budget negotiations in Washington.

Investors have been closely following the talks between the White House and Congress over the “fiscal cliff,” which refers to sharp government spending cuts and tax increases scheduled to start Jan. 1 unless an agreement is reached to cut the budget deficit. Economists say that those measures, if implemented, could push the U.S. economy back into a recession.

“Right now the market is just going to be held hostage as to what happens in the next five hours, versus what's going to happen in the next five years,” said Dan Veru, chief investment officer at Palisade Capital Management, in Fort Lee, New Jersey.

Americans cut back on spending last month and saw no growth in their income, reflecting disruption from Superstorm Sandy that could hold back economic growth in the final months of the year.

The Commerce Department reported that consumer spending dropped 0.2 percent in October. That's down from an increase of 0.8 percent in September and the weakest showing since May.

Among stocks making big moves:

—Yum Brands, which owns KFC, Pizza Hut and Taco Bell, fell $6.90 to $67.58. The fast-food operator reported disappointing sales and earnings forecasts. An analyst recommended that investors sell the stock.

—Zynga, the maker of computer games including “Farmville” and “Cityville,” fell 17 cents to $2.45 after the company said late Thursday that it was loosening its relationship with Facebook.

—VerSign plunged $5.50 to $33.83 after the company announced the terms of its new contract to run the key directories that keep track of “.com” domain names. The company won't be allowed to raise prices on the registration of such names without government approval.

—Duke Energy rose $1.10 to $63.49 after the company said its CEO will step down as part of a settlement with the North Carolina utilities regulator that ends an investigation into the company's takeover of in-state rival Progress Energy.

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America waits for Powerball jackpot winners to reveal themselves

Powerball officials confirmed that there are two winning tickets in the second-biggest lottery in history, sold in Arizona and Missouri.

Someone missing at work on Thursday? For many in Arizona and Missouri, that was just one more reason to speculate on who won the record Powerball lottery whose golden tickets were sold in those states.

And while America was waiting to learn who will share in the estimated $587.5-million jackpot, lottery officials prepared to hold news conferences Thursday to highlight the establishments where the winning tickets were sold. Everybody loves a winner, but in the lottery world, the sellers of winning tickets get to share the lucky spotlight.

On Wednesday night, officials drew the winning numbers -- 5, 16, 22, 23, 29, and 6 as the powerball. Two winning tickets will split the jackpot, the largest in Powerball history and the second-largest lottery prize in U.S. history.

QUIZ: Test your knowledge of Powerball

All that is known so far is that one of the winning tickets was sold in the Kansas City area and the other was in Arizona. The winners have 180 days to claim their prize.

Like many forms of gambling, the lottery runs on selling the dream of instant riches, mainly to people who most likely will never have a chance to earn any amount close to a major jackpot.

That the odds of winning are almost one in 176 million rarely serves as a damper on the frenzy, designed to up the drama and the eventual net proceeds that go to the states who are sponsors. (About $1 of each $2 ticket goes to fund the prizes, with the rest going to the states -- minus the administrative costs to run the lottery.)

The record Powerball lottery was no different. At its peak, tickets were selling at a rate of about 130,000 a minute -- the equivalent of a small city picking numerical combinations (or more likely allowing a machine to randomly choose them). That surge is partly responsible for driving up the jackpot to astronomical heights.

It was also fueled by the lack of a winner in earlier rounds. Wednesday’s jackpot had been increased by 16 consecutive failures to pick a winner, rolling over the pot.

One reason for a delay in winners coming forward may be their need to figure out a financial strategy. Winners can be paid over time, for the full $587.5 million, or all at once, for a cash value of $384.7 million.

There are also tax and investment issues that can require some expertise. For example, with the federal government weighing increased taxation on the rich as one way to solve the issues connected to the so-called fiscal cliff, some people may want to pull the income into this year instead of next.

And of course, if the winning ticket was bought by a group such as an office pool, it may take some time to round up the winners and figure out the next step.

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AP Newsbreak: New Suzanne Collins book in 2013

NEW YORK (AP) — "The Hunger Games" novelist Suzanne Collins has a new book coming out next year.

The multimillion-selling children's author has completed an autobiographical picture story scheduled for Sept. 10, 2013, Scholastic Inc. announced Thursday. The 40-page book will be called "Year of the Jungle," based on the time in Vietnam served by Collins' father, a career Air Force officer.

"Year of the Jungle" is her first book since 2010's "Mockingjay," the last of "The Hunger Games" trilogy that made Collins an international sensation. More than 50 million copies of the "Hunger Games" books are in print and the first of four planned movies has grossed more than $600 million worldwide since coming out in March.

Collins' next project will be intended for ages 4 and up, a younger audience than those who have read, and re-read, her dystopian stories about young people forced to hunt and kill each other. But "Year of the Jungle" will continue, in a gentler way, the author's exploration of war. James Proimos, an old friend from her days as a television writer who helped persuade Collins to become a children's author, illustrated the book.

"For several years I had this little wicker basket next to my writing chair with the postcards my dad had sent me from Vietnam and photos of that year. But I could never quite find a way into the story. It has elements that can be scary for the audience and it would be easy for the art to reinforce those. It could be really beautiful art but still be off-putting to a kid, which would defeat the point of doing the book," Collins, 50, said in a statement released by Scholastic.

"Then one day I was having lunch with Jim and telling him about the idea and he said, 'That sounds fantastic.' I looked at him and I had this flash of the story through his eyes, with his art. It was like being handed a key to a locked door. So, I just blurted out, 'Do you want to do it?' Fortunately he said 'Yes.'"

"How could I refuse?" Proimos said in a statement. "The idea she laid out over burritos and ice tea during our lunch was brilliant and not quite like any picture book I had ever come across. The writing is moving and personal. What Suzanne does so well here is convey complicated emotions through the eyes of a child."

According to Scholastic, "Year of the Jungle" will tell of a little girl named Suzy and her fears after her father leaves for war. She wonders when he'll come back and "feels more and more distant" as he misses family gatherings. He does return, but he has changed and his daughter must learn that "he still loves her just the same."

Collins has said before that she wanted to write a book about her father. In a 2010 interview with The Associated Press, she explained that her father was a trained historian who made a point of discussing war with his family.

"I believe he felt a great responsibility and urgency about educating his children about war," she said. "He would take us frequently to places like battlefields and war monuments. It would start back with whatever had precipitated the war and moved up through the battlefield you were standing in and through that and after that. It was a very comprehensive tour guide experience. So throughout our lives we basically heard about war."

Scholastic also announced Thursday that "Catching Fire," the second "Hunger Games" book and originally released in 2009, is coming out in June as a paperback. The paperback edition usually comes within a year of the hardcover, but "Catching Fire" had been selling so well that Scholastic waited. "Mockingjay" has yet to be released as a paperback.

Next summer, Collins' five-volume "The Underland Chronicles," published before "The Hunger Games," will be reissued with new covers.

"'The Underland Chronicles,' with its fantasy world and 11-year old protagonist, Gregor, was designed for middle readers," Collins said in a statement. "The 'Hunger Games' trilogy features a teen narrator, Katniss Everdeen, and a stark dystopian backdrop for the YA (young adult) audience. 'Year of the Jungle' attempts to reach the picture book readers by delving into my own experience as a first grader with a father deployed in Vietnam."

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Cost of Brand-Name Prescription Medicines Soaring

The price of brand-name prescription medicines is rising far faster than the inflation rate, while the price of generic drugs has plummeted, creating the largest gap so far between the two, according to a report published Wednesday by the pharmacy benefits manager Express Scripts.

The report tracked an index of commonly used drugs and found that the price of brand-name medicines increased more than 13 percent from September 2011 to this September, which it said was more than six times the overall price inflation of consumer goods. Generic drug prices dipped by nearly 22 percent.

The drop in the price of generics “represents low-hanging fruit for the country to save money on health care,” said Dr. Steve Miller, the chief medical officer of Express Scripts, which manages the drug benefits for employers and insurers and also runs a mail-order pharmacy.

The report was based on a random sample of six million Express Scripts members with prescription drug coverage.

The Pharmaceutical Research and Manufacturers of America, the trade group representing brand-name manufacturers, criticized the report, saying it was skewed by a handful of high-priced specialty drugs that are used by a small number of patients and overlooked the crucial role of major drug makers.

“Without the development of new medicines by innovator companies, there would be neither the new treatments essential to progress against diseases nor generic copies,” Josephine Martin, executive vice president of the group, said in a statement.

The report cited the growth of specialty drugs, which treat diseases like cancer and multiple sclerosis, as a major reason for the increase in spending on branded drugs. Spending on specialty medicines increased nearly 23 percent during the first three quarters of 2012, compared with the same period in 2011. All but one of the new medicines approved in the third quarter of this year were specialty drugs, the report found, and many of them were approved to treat advanced cancers only when other drugs had failed.

Stephen W. Schondelmeyer, a professor of pharmaceutical economics at the University of Minnesota, said the potential benefits of many new drugs did not always match the lofty price tags. “Increasingly it’s going to be difficult for drug-benefit programs to make decisions about coverage and payment and which drugs to include,” said Mr. Schondelmeyer, who conducts a similar price report for AARP. He also helps manage the drug benefit program for the University of Minnesota.

“We’re going to be faced with the issue that any drug at any price will not be sustainable.”

Spending on traditional medicines — which treat common ailments like high cholesterol and blood pressure — actually declined by 0.6 percent during the period, the report found. That decline was mainly because of the patent expiration of several blockbuster drugs, like Lipitor and Plavix, which opened the market for generic competitors. But even as the entry of generic alternatives pushed down spending, drug companies continued to raise prices on their branded products, in part to squeeze as much revenue as possible out of an ever-shrinking portfolio, Dr. Miller said.

Drug makers are also being pushed by companies like Express Scripts and health insurers, which are increasingly looking for ways to cut costs, said C. Anthony Butler, a pharmaceuticals analyst at Barclays. “I think they’re pricing where they can but what they keep telling me is they’re under significant pressure” to keep prices low, he said.

Express Scripts earns higher profits from greater use of generic medicines than brand name drugs sold through their mail-order pharmacy, Mr. Butler said. “There’s no question that they would love for everybody to be on a generic,” he said.

Dr. Miller acknowledged that was true but said that ultimately, everyone wins. “When we save people money, that’s when we make money,” he said. “We don’t shy away from that.”

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New York Fed president sees greater impact from Sandy

NEW YORK -- Superstorm Sandy appears to have damaged the New York area's economy more than initially believed, New York Federal Reserve president William Dudley said.

Although the monster storm's impact has yet to be fully measured, Sandy's toll on labor markets, manufacturing and the area's infrastructure appears to be "more extensive and longer-lasting than first anticipated," Dudley said in a speech prepared for delivery at Pace University.

Every firm that responded to the New York Fed's manufacturing survey reported an impact from Sandy, with 40% indicating that the storm shut down or severely crippled their operations for at least five days.

The number of workers filing initial claims for unemployment insurance tripled in New York and New Jersey, Dudley added, suggesting the storm has cost at least 70,000 jobs in the two states so far.

Losses, in dollars, could be huge. The region contributes $1.4 trillion of the country's gross domestic product, or $3.8 billion a day, Dudley said.

"These data suggest that the disruptions that we have seen, and continue to see, could be substantial," Dudley said. 

Still, rebuilding could help offset Sandy's economic drag.

"Past studies suggest that reconstruction spending provides a powerful stimulus to local economies, both in its direct effects and its associated multiplier effects," Dudley said. "Thus, I expect that reconstruction will provide a similar sizable boost to our regional economic activity, and one that is likely to continue well into 2013."

ALSO:

GDP is revised higher, but large risks threaten outlook

Initial jobless claims dropped again last week after Sandy 

Mortgage rates level off near record low, Freddie Mac says 

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Norquist: GOP concern over tax pledge just 'impure thoughts'

Grover Norquist on Wednesday rebuffed claims that his anti-tax crusade is losing steam, calling statements from prominent Republicans hinting at their departure from his anti-tax pledge "impure thoughts."

Norquist, president of Americans for Tax Reform, met with Politico’s Mike Allen to offer his thoughts on the looming “fiscal cliff,” and the growing narrative that Republicans, after years of tying themselves to ATR’s pledge not to raise taxes, may be ready to jump ship.

Most recently, Rep. Tom Cole (R-Okla.) said in a private meeting with the House Republican whip team Tuesday morning that Republicans should take the opportunity to extend President George W. Bush’s tax cuts for 98% of Americans, calling it an “early Christmas present” for taxpayers.

And on Sunday, Sen. Lindsay Graham (R-S.C.) and Rep. Peter King (R-N.Y.) joined Sen. Saxby Chambliss (R-Ga.) in voicing concern over continued adherence to Norquist’s pledge.

House Speaker John A. Boehner (R-Ohio) responded to Cole on Wednesday, saying that though Cole is a friend and supporter, he disagrees entirely with his stance. “The goal here is to grow the economy and control spending. You’re not going to grow the economy if you raise tax rates on the top two rates,” Boehner said.

Though Norquist commented that Cole’s recommendation was “an interesting tactic,” he remained firm that his pledge remains viable, saying that anyone suggesting that opposing tax increases is no longer in vogue is “an idiot.”

The pledge, Norquist claimed, “takes weasel words out” of campaign promises to cut taxes, and provides voters a clear picture of a candidate's stance, a stance he said the Republican Party has built its brand upon.

Norquist said that signing the pledge is about informing voters and entrenching a preexisting policy stance, instead of an oath of fealty to ATR and its champion cause.

“They don’t need my permission to raise taxes,” he said, adding that such power lies in the hands of voters.

And he dismissed claims that the pledge’s powers extend beyond the promises tied to its concise wording.

“It doesn’t solve all of the world’s problems; it doesn’t design tax reform,” Norquist said.

But Norquist did design a general road map for Republicans to use in fiscal cliff negotiations.

“You need to have this conversation in public, you need to be online so you can have the moral higher ground,” he said, recommending that the GOP aim for a temporary extension of Bush’s tax cuts, with comprehensive tax reform to follow soon after.

“If the Republicans lose in such a way that they have their fingerprints on the murder weapon, then you have a problem,” he said, adding that public debate over the fiscal cliff would allow Republicans a chance to turn the tide against President Obama and the Democrats, so long as they maintain “credible clarity” in espousing their low-tax vision.

Norquist said he worries about conceding any ground to Democrats on tax increases.

“What the Democrats do is trickle-down taxation,” he said. “They tax the rich and then they screw everybody.”

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ABC celebrating Dick Clark on New Year's Eve

NEW YORK (AP) — ABC is turning its first New Year's Eve without Dick Clark in four decades partly into a celebration of the showbiz impresario's life.

Clark, who did the first annual "New Year's Rockin' Eve" special on ABC in 1972, died at age 82 in April. Fergie and Jenny McCarthy will be hosts of a two-hour tribute to Clark that will air at 8 p.m. ET on New Year's Eve.

ABC said Wednesday that Ryan Seacrest will host the countdown show from Times Square, with Taylor Swift, Carly Rae Jepsen, Neon Trees, Flo Rida and Pitbull among the musical guests. Seacrest hosted the past few years with Clark making short appearances. A stroke had diminished Clark's communications skills.

Al Green, Helen Reddy and Three Dog Night performed at Clark's first New Year's special.

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SAC Said to Get Notice From SEC on Insider Trading

The U.S. Securities and Exchange Commission told SAC Capital Advisors LP that it is considering suing the $14 billion hedge fund run by Steven Cohen for fraud involving alleged insider trading by a former portfolio manager who was arrested last week, according to three people with knowledge of the matter.

The Wells notice sent to SAC Capital cited fraud and control-person liability over its management of CR Intrinsic Investors LLC, a unit of SAC, according one of the people. Investigators are considering extending the claims to Cohen, who wasn’t named in the Wells notice, said the person, who like the others asked not to be named because the information is private.

SAC received the warning last week, Tom Conheeney, the firm’s president, told investors on a conference call today during which the firm discussed the Nov. 20 arrest of the former SAC portfolio manager, Mathew Martoma, on criminal charges of insider trading while at the firm. Cohen, who spoke briefly at the start of the call, said he acted appropriately when he traded shares of two drugmakers four years ago on recommendations from Martoma, according to two of the people. Trades in the shares by SAC are at the center of what prosecutors call the biggest insider-trading scheme that generated $276 million in gain and averted losses.

Conheeney said the firm, based in Stamford, Connecticut, will pay any penalties rather than investors, according to one of the people.

Martoma’s Charges

Jonathan Gasthalter, a spokesman for SAC, declined to comment on the call and the Wells notice.

The SEC sends a Wells notice to a company or an individual after its staff has determined that sufficient wrongdoing has occurred to warrant civil claims being filed. The notice gives the recipient a chance to try to dissuade the SEC from taking action. In some cases, the SEC has decided to refrain from filing a complaint after sending a Wells notice.

SAC received the Wells notice on Nov. 20, the day Martoma was arrested, according to one of the people. The SEC, which is a civil enforcement agency, typically coordinates with federal prosecutors who pursue criminal claims in insider-trading cases. While the SEC often brings insider-trading claims on circumstantial evidence, criminal prosecutors face a higher burden of proof, which can prolong investigations as they seek to pin down corroborating witnesses.

Elan, Wyeth

Prosecutors say SAC, one of the best-performing hedge funds, reaped the gains and averted losses by trading stocks of Elan Corp. and Wyeth LLC in 2008 based on inside information Martoma received, and that Cohen traded those shares in his own portfolio and discussed the stocks with Martoma.

“Mathew Martoma was an exceptional portfolio manager who succeeded through hard work and the dogged pursuit of information in the public domain,” his lawyer Charles Stillman said last week in an e-mailed statement, adding that he expected Martoma to be fully exonerated.

In insider-trading cases, the SEC can seek disgorgement of illegal profits, as well as three times that amount in penalties. The agency can also file administrative actions to bar offenders from the securities industry.

James Cox, a professor at Duke University School of Law in Durham, North Carolina, said the control-person liability provision that Congress created in 1988 meant managers who fail to maintain a system to discourage and detect insider trading by subordinates could be sued by the SEC. The provision wouldn’t require the SEC to prove Cohen knew about the trades, just that the compliance system broke down, Cox said.

CR Intrinsic

CR Intrinsic, the unit where Martoma worked at the time, was named last week as a defendant in a civil complaint by the SEC, along with Martoma and the doctor who allegedly provided the inside information.

SAC Capital first was linked to a now five-year government investigation of insider trading on Wall Street shortly after the October 2009 arrest of hedge-fund manager Raj Rajaratnam when former employee Richard Choo-Beng Lee was among those charged with insider trading at another firm. Six former or current SAC Capital employees have been tied to insider trading while working at the firm, including three who have pleaded guilty.

Neither Cohen nor SAC have been accused of wrongdoing in last week’s criminal complaints. While Cohen wasn’t mentioned by name in the complaint, he is the hedge-fund owner referred to in the criminal complaint, according to people familiar with the matter.

Redemption Notice

Previous insider cases involving former SAC employees haven’t deterred investors. Cohen’s main fund saw net deposits last year before he closed it to new money, people with knowledge of the matter said at the time.

One investor, who asked not to be named because the fund is private, said he wouldn’t be compelled to pull out his money unless there was a criminal indictment against Cohen.

Clients can only pull 25 percent of their investment every quarter after giving 45 days notice, meaning it would take them a year to redeem in full. The next deadline for putting in a redemption notice is mid-February.

If enough people wanted to pull their money, Cohen could turn SAC into a family office, said Brad Balter, head of Boston- based Balter Capital Management LLC, which invests client money in hedge funds. About $8.4 billion, or 60 percent, of SAC’s assets belong to Cohen and his employees.

“If the owner gets sued by the SEC, what’s the rationale to stay?” said Balter, who has never invested in SAC or in any of its spinoffs. “You know your investors will ask you why you have that in your portfolio.”

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