From Precy Dumlao, Opalesque Asia:
Steven Cohen’s $14bn SAC Capital Advisors is facing scrutiny from the Securities and Exchange Commission and the Federal Bureau of Investigation over trades it made in Weight Watchers International and InterMune Inc., various media reports said.
In a report, Bloomberg quoted an unidentified source about the investigations confirming the on-going probe.
Last November 28, Cohen told clients that his firm received a Wells notice from the SEC concerning former SAC portfolio manager Matthew Martoma who was formally charged with insider trading that resulted in profits amounting to $276m.
Cohen, who has not been charged with any wrongdoing, assured investors that the company "acted appropriately and will continue to co-operate with the government’s inquiry.
A separate report by Reuters confirmed that U.S. authorities have placed SAC Capital under probe for possible insider trading in the shares of popular diet company Weight Watchers International, particularly during the first half of last year when the hedge fund firm took a sizeable position in the stock.
A person privy to th......................
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