insider-trading

Apparently this came as a surprise to Rajat Gupta. Read more »

  • Calls from his guy at the Patagonia factory saying they’re backed up with orders right now the Point72 fleeces probably won’t get shipped ’til next Thursday
  • A message that his ex-wife was spotted on the property, and that she’s bypassed security and is heading for the trading floor
  • To be informed some little shit with a 12th birthday already rented the Super Duper Weenie truck for the weekend.
  • The news that yet another one of his employees was charged with insider trading

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As you’ve probably heard by now, the upper echelons of SAC Capital management have selected a new name for the firm and its sub-units as part of an effort to close the insider trading/government cavity search chapter of its history and begin anew (next month). They’ve gone with Point72 Asset Management, inspired by the firm’s Stamford address (72 Cummings Point Road) and honestly? We’re not loving it. What was once a name that evoked confidence, excitement, and yes, fear, all in equal measures, now brings to mind a Kia. What could have been “King of Diamonds Capital Management” is now directions once you get off 95.

There is, however, a small glimmer of hope, buried beneath Point72 and EverPoint and all of the other points and the off brand “Cubist Systematic Strategies.”1 To his secretive2 “personal investments,” the great man will continue to lend his name. Read more »

1. He’s not convinced the government proved he committed securities fraud. 2. He feels pretty strongly that the revelation he created fake Harvard Law School transcripts that were accidentally sent to judges, with whom he was seeking prestigious clerkships, made him look bad. Read more »

For the ten SAC Capital employees who have been convicted of securities fraud over the last several years, the results of the government’s crackdown on insider trading are obvious: time in the big house, fines, and the dream of being being honored as a distinguished alumni of Stanford Business School dashed. For SAC founder Steve Cohen, too, the impact is clear: no more outside investors, a new layers of management– a cocoon, if you will– between him and his traders, and a giant metal ‘S’ ‘A’ and ‘C’, which once graced the wall of the firm’s lobby rendered completely useless.

For another group of people, though, the effect of multi-year investigation is less clear: the hundreds of SAC employees who did not engage in insider trading. Specifically, what having the hedge fund soon to formerly be known as SAC Capital on their resumés means for their professional lives and long-term career plans. Would it be the equivalent of a scarlet ‘S’ on their chests? Would hiring managers blow them off in a “seat’s taken” kind of way? Would they have to burn their fleeces and any other evidence of having once been associated with the firm? Would they stand in the shower scrubbing their skin raw in an attempt to get the SAC stench out, after a particularly unpleasant meeting with a potential employer who announced flatly that he could “still smell them on [you]“? Would they have to leave town, and start over in a place where no one had ever heard of SAC Capital? Read more »

From 2010 to 2014, when he was working in Evercore’s mining and metals group, Frank Perkins Hixon Jr. occasionally found himself on the receiving end of material non-public information. Sometimes it was about forthcoming acquisitions. Sometimes it was about his own company’s earnings. In both cases, FPH Jr. knew he could sweeten things for himself by trading on the 411. Naturally, he didn’t want to get fired from Evercore for securities fraud, as it would put a damper on his ability to obtain inside info, so he couldn’t be too obvious. Placing the trades in an account under his own name was obviously out. Same went for anyone with whom he shared a last name, like his mom or dad. And that’s when the lightbulb went off: Read more »

Much like being a first, second, or third year analyst on Wall Street, a lot of being a non-partner employee at a law firm is being shit on. Not respected. Treated like an idiot. That many of these attorneys have six-figure debt and are, in some cases, decades out of their early twenties makes the day to day treatment by their superiors all the more harsh. They can’t ease the pain with a visit to the Murray Hill Brother Jimmy’s; all the can do is go home and wonder “What kind of a life is this? Why do I put up with this,” cry, or some combination thereof. Some quit; others resign themselves to the way of life; a select few go out and get drunk on pinot grigio and decide, “I’m not some paper pusher. I’m an an esquire. I’m important. I know stuff. I’m gonna show them. I’m gonna show ALL of them [knocks over glass].” Read more »