SAC Capital

Judge Wants To Check SEC’s Back-Of-The-Envelope Math

Victor Marrero’s not so sure that the regulator was sufficiently scientific in calculating exactly how much Point72 Asset Management née SAC Capital Advisors owes to the universe (and Elan and Wyeth shareholders) for its extraordinarily lucrative bit of insider trading. Read more »

Apparently not everyone is interested in sticking around for the chance to manage Steve Cohen’s second cousins’ money, or for the new zip-ups and other assorted swag. Read more »

The more things change, the more they stay the same, except if we’re talking about Patagonia fleeces, which these clearly are not, although perhaps these are those will be issued for Fall/Winter.

Earlier: Everything’s Going To Be Alright: A Sign From Stamford

Related: “What the hell am I supposed to do with these?!”

  • 28 May 2014 at 6:07 PM

Steve Cohen Cohen’s Summer Is Looking Up

It could be months, maybe even years, before there is a resolution of the Securities and Exchange Commission’s administrative case against the billionaire investor Steven A. Cohen, whose former hedge fund pleaded guilty to insider trading. In a letter Wednesday to the administrative judge overseeing the S.E.C.’s action against Mr. Cohen, which accuses him of failing to supervise his employees, federal prosecutors requested an extension of an earlier stay that has been in place since August. Prosecutors want the proceeding stayed pending the outcome a closely watched appeal of the convictions of two former hedge fund managers, which could lead to new trials not only for them but potentially others convicted of insider trading. [Dealbook]

Earlier this week, we received a stark reminder that things change. It doesn’t matter if we don’t want them to; it doesn’t matter if we’re not ready. We can’t freeze time1. We can’t pretend things will ever be the same. The old sign is gone. So is the website. Who knows where an email sent to an old address will end up. There are so many questions. There are so few answers. But in the midsts of it all, there is still one thing we can count on: Read more »

…on Thursday, U.S. District Judge Laura Swain is scheduled to punctuate the firm’s remarkable downfall when she rules on its plea to criminal insider-trading charges. If Judge Swain accepts the plea, as expected, the firm will pay an additional $1.2 billion in penalties, including the largest criminal fine ever in an insider-trading case. Since the guilty plea last November, portfolio managers who oversaw more than 10% of SAC’s capital have either left or announced plans to leave, according to people familiar with the firm’s operations. “How could I tell my kids I stayed at a firm that admitted to insider trading?” said one former employee. [WSJ]

Bart M. Schwartz, the outside consultant tapped by Steven A. Cohen and federal prosecutors to monitor the operations at Mr. Cohen’s new family office, has closer ties to the firm than previously known. The son of an executive at Mr. Schwartz’s nationwide compliance consulting firm is a portfolio manager at Point72 Asset Management, the firm formerly known as SAC Capital Advisors. Mr. Schwartz said that the potential conflict was disclosed to Mr. Cohen and his legal team and that federal prosecutors and all sides were comfortable with the situation. Mr. Schwartz, a former federal prosecutor, said that he disclosed the matter to the parties soon after he was approached about serving as the outside consultant for Mr. Cohen’s firm. [Dealbook]