Komfie Manalo, Opalesque Asia:
For the first time since being embroiled in an insider trading case, Steven Cohen’s SAC Capital has admitted that the investigation exacted a heavy toll on the business as the hedge fund announced it would close down its London office by year end and cut six portfolio management teams, various media reported.
In a memo sent to employees on Tuesday, SAC Capital said six portfolio management teams in the U.S. would be cut from the firm and at the same time, some 50 employees in its London office, one of the firm’s largest branches outside of its headquarters in Connecticut, would lose their jobs, reported the New York Times.
SAC president Tom Conheeney was quoted as saying in the memo, "As our negotiations with the government have unfolded, it has become clear to us that the outcome the government is demanding is likely to have a greater than first anticipated impact on the firm. We have concluded that we must operate as a simpler firm and reduce our capital allocations."
SAC employed more than 1,000 people at the start of 2013 in its 10 offices in various countries. However, the number fell to 950 as at end of September and the number is seen to decrease further once the staff receives their year-end bonuses.
Since July, the hedge fund firm has been cutting down on its number of staff after the government filed cr......................
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