Sun, Apr 20, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

SAC to wind down advisory business in $1.5bn plea deal

Monday, October 21, 2013

Precy Dumlao, Opalesque Asia:

From Precy Dumlao, Opasque Asia – SAC Capital, the hedge fund run by billionaire Steven A. Cohen, could close its advisory business and stop managing money for outside investors if the $1.5bn plea agreement with the Securities and Exchange Commission pushes through.

According to the New York Times, the closure of SAC Capital’s advisory business is part of the plea agreement with the government with the aim of resolving the alleged insider trading case against SAC Capital. Under the deal, SAC Capital is required to enter a guilty plea to criminal misconduct and pay a penalty up to $1.5bn.

Once the deal is sealed SAC Capital will cease to function as an investment adviser although this is seen by many insiders symbolic in nature as the hedge fund has already returned billions of dollars to investors since the government announced it was investigating the company for alleged involvement in insider trading.

Cohen has already indicted in the past that he intended to operate SAC Capital as a family office as at least $8bn of the hedge fund’s $14bn assets is his personal wealth with nearly $41bn belonging to his employees.

A separate report by the Telegraph said that the more than $1bn penalty being......................

To view our full article Click here

Banner
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing
  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Opalesque Exclusive: Classic Auto Funds Limited (CAF) launches several car investing funds[more]

    Bailey McCann, Opalesque New York: A new trend in alternative alternatives is emerging - car appreciation funds. Classic Auto Funds Limited (CAF) is the first to market with several funds that make super elite luxury cars into real asset investments. As a result of growing overseas demand couple

  2. CTAs could face new challenges in a rising rates environment[more]

    Bailey McCann, Opalesque New York: CTAs have taken a beating performance wise lately, and asset flows reports show that investors aren't sticking around to see how the movie ends. Now, a new white paper from Roy Niederhoffer and Coen Weddepohl notes that as interest rates start to tick back u

  3. Investing – Big hedge funds bought Puerto Rico's junk bonds, Fidelity explores new trading venue amid flash trade concerns, Crisis-era Greek bonds reward early buyers with big effective returns, Cargill unit discloses stake in Freddie preferred[more]

    Big hedge funds bought Puerto Rico's junk bonds From Reuters.com: Several large hedge funds doubled down on Puerto Rico in last month's giant bond sale despite the U.S. territory's financial struggles, the Wall Street Journal reported, citing confidential documents reviewed by the newspa

  4. Opalesque Exclusive: Hedge fund replicators evolve[more]

    Bailey McCann, Opalesque New York: Hedge fund replicators as a group of products tend to get a bad rap from hedge fund managers who suggest that the best a replicator can offer is dynamic beta capture. A

  5. Commodities – Popular value fund manager David Iben bets on Russia, gold,[more]

    From Reuters.com: With large bets on Russia and North American gold miners, one of the best performing stock pickers in the wake of the 2008 financial crisis is back with a new fund that reflects his deep aversion to following the crowd. In the Kopernik Global All-Cap Fund, David Iben is follo