Sat, Mar 28, 2015
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

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. Other Voices: Does the hedge fund industry benefit society?[more]

    This article was authored by Don Steinbrugge, Chairman of Agecroft Partners, a US-based global consulting and third party marketing firm for hedge funds. It is no secret that the hedge fund industry is viewed negatively by a la

  2. Private credit comes into focus for investors[more]

    Bailey McCann, Opalesque New York: As investors look for a way out of the low yield/no yield environment, private credit is becoming an increasingly attractive asset class, according to a white paper from Bayshore Capital Advisors. Private credit has grown steadily since the financial crisis as

  3. Other Voices: The role of diversification in CTA portfolios[more]

    2014 brought a resurgence of managed futures strategies, or CTAs, which performed very well as a whole, outperforming all other hedge fund strategies. However, a closer look reveals that there was a wide range of performance, or return dispersion, across managers. The bottom line? Not all CTAs

  4. Neuberger Berman unit buys 20% stake in activist hedge fund Jana Partners for $2bn[more]

    Komfie Manalo, Opalesque Asia: Neuberger Berman’s unit Dyal Capital Partners bought a 20% stake in activist hedge fund firm Jana Partners worth $2bn, WSJ.com reports. The deal comes as activi

  5. Hedge fund launches fall again, $1bn funds found to outperform even smaller hedge funds[more]

    Komfie Manalo, Opalesque Asia: The number of new hedge fund launches fell again in 2014, the third consecutive year of decline, while fund liquidations saw their first drop since 2010, according to the latest HFR Market Microstructure Industry Report released by industry data provider HFR. Acc

 

banner