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]
Things Could Be Worse But They Could Also Be Better At SAC Capital Right Now
The good news, if you are Mr. Steve Cohen: you were neither charged nor "mentioned by name" in the criminal complaint against your former employee, Mathew Martoma. The less good news: YOU ARE PORTFOLIO MANAGER A. YOU NEVER WANT TO BE PORTFOLIO MANAGER A!
Things Could Be A LOT Better At SAC Capital Right Now
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”; “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."