Portfolio Manager A

SAC Capital Advisors LP executives told investors Monday that its settlements with securities regulators, in which the hedge-fund firm agreed to pay a record $616 million penalty to end two insider-trading cases, was a difficult decision that will help it move forward. On a conference call with clients, SAC President Tom Conheeney cautioned that the two agreements with the Securities and Exchange Commission wouldn’t mark the end of the regulatory scrutiny that has shrouded the firm in recent years. The settlements, Mr. Conheeney said on the call, are “an important first step.” But, he added, “I don’t want to leave you with the thought that this means everything is cleared up.” [WSJ, earlier]

SAC Capital Advisors LP, the hedge fund run by billionaire Steven A. Cohen, will pay a record $614 million to settle U.S. regulatory claims that two of its affiliates made illegal trades using nonpublic information. CR Intrinsic Investors agreed to pay more than $600 million — the most ever in an insider-trading case — and Sigma Capital will forfeit about $14 million, the Securities and Exchange Commission said in a statement today. Cohen hasn’t been accused of wrongdoing. “This settlement is a substantial step toward resolving all outstanding regulatory matters and allows the firm to move forward with confidence,” Jonathan Gasthalter, a spokesman for SAC Capital, said in an e-mailed statement. “We are committed to continuing to maintain a first-rate compliance effort woven into the fabric of the firm.” [Bloomberg]

  • 26 Feb 2013 at 11:51 AM

Steve Cohen Did Pretty Well For Himself Last Year

The end of 2012 might’ve been a tough one for the SAC Capital founder, what with the matter of a former employee being accused of orchestrating “the most lucrative insider trading scheme ever,” being referenced in the complaint as Portfolio Manager A, and ultimately being forced to show the softer side of Steve but the Big Guy still managed to take home $1.3 billion, so he’s got that going for him. Other people who made a respectable amount of money include highest earning hedge fund manager David Tepper, with $2.2 billion, Carl Icahn at $1.9 billion, and retired person James Simons, who didn’t have to lift a finger for his $1.9 billion. [Forbes]

SAC Capital Advisors will pay out about $660 million next month to investors who had requested withdrawals amid concerns the hedge-fund firm will face mounting legal and regulatory scrutiny, people familiar with the plan said. Clients had until Thursday to inform SAC if they wanted to withdraw money from the Stamford, Conn.-based firm this quarter. The people said investors asked to redeem about $1.7 billion from SAC. The remaining withdrawals will be paid out over the course of 2013, the people said. “As we have been saying, the redemptions will have no significant impact on our funds,” a SAC spokesman said in a statement Friday. [WSJ]

  • 22 Jan 2013 at 4:30 PM

SAC Thinking the Unthinkable

The once-proud firm, which could blithely charge three-and-50 with a dismissive shrug of the shoulders or a penetrating, “you’ve got a lot of fucking nerve to question me” glare, has suffered indignities ranging from a snub from Citigroup (Citigroup!) to begging and coughing up extra cash to hang on to employees to pleading with clients to stick with it through the hard times, even as it continues to post double-digit returns. Now, it’s having Japanese banks turn up their noses at a once-in-a-lifetime, too-good-to-be-true opportunity to get a little piece of the Big Guy’s pie. Read more »

According to Fox Business reporter Chaz Gasparino, the hedge fund has been working overtime to convince investors ahead of the February 15 deadline for submitting redemption notices to stick with Steve. With a moderately to majorly amazing sales pitch: Read more »

…vis–à–vis their insider trading charges against him (the former SAC Capital portfolio manager maintained his innocence today, pleading not guilty to turning material non-public information about clinical drug trials passed onto him by his doctor friend into profit). In related news, Martoma failed to give the Feds their Christmas wish, i.e. turning on the Big Guy already. [Bloomberg, NYP]

Unclear but, based on recent reports, very possible. If you can come up with another idea re: how the “intimidating Cohen has become even more intimidating” in the wake of MartomaGate, we’re all ears. Read more »