Saturday, 25 February 2017
Last updated 13 hours ago
Feb 2 2011 | 11:48am ET
SAC Capital Advisors' Steven Cohen on Monday moved to reassure the firm's investors that the Justice Department's wide-ranging insider-trading probe will not affect them.
Stamford-based SAC, which has been subpoenaed in the investigation, is widely rumored to be U.S. Attorney Preet Bharara's chief target, although neither the firm itself or any of its employees has been accused of any wrongdoing. But in his year-end letter to investors, obtained by MarketWatch, Cohen said that it was business as usual at the $12 billion firm.
"We are confident there will be no financial impact to our investors," Cohen wrote. "While this investigation plays out, I and the other portfolio managers remain focused on managing the assets entrusted to us."
"We are confident that our ability—and my ability—to do so will not be affected."
No financial impact either from legal bills or distracted managers: Cohen wrote that SAC would pick up the tab for costs incurred due to the probe.
Cohen also said that the firm is adding several new trading teams and predicted that their first year at the hedge fund would be less "strange" than 2010. And he noted that, thanks in part to the firm's billions in internal and partner capital, SAC enjoys a "stable" asset base.