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Alternative Market Briefing

SAC Capital returns 20% in its last year managing other people’s money

Thursday, January 02, 2014

Komfie Manalo, Opalesque Asia:

Steven Cohen’s SAC Capital Advisors is no more. But not after ending 2013 and its life as a hedge fund managing other people’s money with a bang!

A report by Reuters claims that SAC Capital returned 20.10% in 2013, making the firm one of the best performing hedge funds, even after the firm pleaded guilty to insider trading and agreed to pay $1.2bn in penalties this year, on top of the $616m SAC Capital agreed to pay the SEC in an settlement earlier last year.

From December 1st to 27th, SAC Capital gained 1.88%, sources said. Comparatively, the HFRX Global Hedge Fund Index is up 0.40% MTD (6.55% YTD).

According to Reuters, Cohen, who has for two decades delivered some of Wall Street's best returns (averaging 30%), wound down the hedge fund’s operations, which was part of the conditions set when his firm pleaded guilty to insider trading in November. The deal with the Securities and Exchange Commission (SEC) prohibits Cohen from managing money for outside investors.

57-year-old Cohen was not formally charged with any criminal wrongdoings but he was accused of failing to supervise his employees’ insider trading deals in a civil case. He is expected to transform his $14bn hedge fund into a family office. His personal fortune is estimated at $9bn.

In mid-December, Two Sigma and Hamilton Reinsurance Group ......................

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