From Precy Dumlao, Opalesque Asia – All the troubles hounding hedge fund manager Steven A. Cohen, founder of SAC Capital are expected to trickle down to his employees soon as the $15bn fund management firm is seen to reduce the number of its staff, close down offices and scale back on its trades as outside investors pull out their money amidst ongoing insider trading investigations.
A report by CNN said that Cohen is faced with tough choices and he has to make decisions soon.
The report quoted said Daryl Jones, director of research at Hedgeye Risk Management, which lists SAC as one of its clients as saying, "There are going to be a lot of tough choices for Steve Cohen to make if he loses the bulk of his outside money, and one of them is probably going to involve trimming his staff."
SAC Capital’s assets are expected to decline to $8bn, or representing Cohen’s personal fortune, after all outside investors have pulled out the bulk of their money, many experts believe the hedge fund will have no need to maintain its current large operations.
The first to be axed from SAC Capital’s 950-employee firm are the "support and ancillary staff," as well as those from the finance and accounting departments, the report added.
Some offices are expected to be closed down as the hedge fund reduces its trades, others added.
Withdrawal requests from SAC Capital h......................
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