Back in October, we detailed a list of things that, if you are the hedge fund manager who goes by the name Steven A. Cohen, you really don’t want to hear first thing in the morning. They included: “The fleeces are on back order”; “Your ex-wife is in the lobby”; “There’s a photographer here who said he’s been authorized to shoot you wearing a king’s robe and crown for a set of playing cards”; and “You’ve been outmaneuvered for the Toledo Mud Hens. But I hear the Binghamton Mets may be available.” Today we must update that list to include another thing, perhaps THE thing, that people delivering news to Cohen don’t want to relay. Paraphrasing but any variants on: “Mr. Cohen, we’ve received a Wells notice and by the way, they’re considering naming you personally.” Read more »
SAC Capital Advisors LP, the $14 billion hedge fund run by Steven A. Cohen, plans to hold a conference call with clients tomorrow, according to an investor who asked not to be named because the information is private. SAC executives have reached out to the firm’s largest investors to calm concern about Cohen’s trading in Elan Corp. and Wyeth LLC after prosecutors for the first time tied the hedge-fund founder to a specific transaction at the center of an insider-trading investigation. [Bloomberg, related, earlier]
San Diego Pension Fund Not Too Worried About The $1.8 Billion Hole Former Deustche Bank Trader Left In Ex-Employer’s AssBy Bess Levin
What’s a couple billion here or there? NBD, is what it is. Read more »
As a result of the Feds’ current attempt to prove insider trading has gone down at certain hedge funds on Wall Street, several shops- some without verdicts of guilt- have been forced to close their doors. Investors saw the fund’s name in the paper in the same headline in which the words ‘insider trading’ appear and that was that. Until recently, such has not been the case for SAC Capital and why is that? Because unlike other funds, which apparently need to include a ‘no pussies’ clause and a forewarning that any stories of possible illegality set off an immediate gate, SAC investors have balls. There is nothing you could put in their faces that would make them flinch. Bat-shit insane ex-wives crying insider trading? Associations with traders who’ve pleaded guilty to putting material non-public information to use? Sodomy by whiteboard marker? Staffers losing appendages in the deep-fryer? You’ll have to do better than that, they say. Except for one.
The firm is up to $7.2 billion in assets (from $6.7 billion last month) and needs to get comfortable with that before it can think about taking on any “new relationships.” [AR]
As you may have read in the papers, the government is currently hard at work trying to prove that employees of certain hedge funds on Wall Street are guilty of insider trading. A bunch of firms have been raided, some arrests have been made, friendships have been destroyed, and a few shops have been forced to shut their doors. The Feds’ little song and dance, experts have noted, appears to be part of a larger attempt to nail one man in particular. Some of you know him as ‘Steve,’ others as ‘my liege’ and others still as ‘Dad.’ To us, he’s simply ‘The Big Guy.’ Read more »
Way back in September, Phil Falcone held a conference call with Harbinger Capital clients wherein a “defensive” Falcone “expressed dismay that some investors had been talking to the press” and strongly urged them to put a sock in it. Apparently some people either didn’t get the memo or, in retaliation for Phil’s decision to lock up their money and then help himself to some in order to pay personal taxes, simply chose to ignore it. For example, yesterday “several” investors told Reuters that the Harbinger Capital Partners fund finished 2010 down around 12 percent and is off about 1.2 percent through the middle of January. In the same article, it was suggested that Falcone had to decided to stop reporting his performance to HSBC to spare himself embarrassment. What did Big P have to say about all this? For one, his investors don’t know shit. Read more »