Thursday, 31 July 2014
Last updated 2 hours ago
Jun 3 2011 | 2:05pm ET
The news is not all bad for SAC Capital Advisors.
The Stamford, Conn.-based hedge fund giant, currently the subject of at least four insider-trading investigations, continues to roar along in spite of those travails. SAC's flagship hedge fund is up 9% this year through May, Bloomberg News reports. And investors continue to flock to the firm, pouring $250 million into its main fund this year.
That inflow, which does not include money invested by firm founder Steven Cohen or other SAC employees, has pushed SAC's assets up by about $2 billion this year, to $14 billion. It also has the firm mulling a stop to them: SAC told clients last month that it might close the fund to new investments.
SAC has brought in $1.5 billion since the middle of last year.
Neither SAC nor any current employees of the firm have been accused of any wrongdoing, but the hedge fund has often appeared to be at the center of the government's insider-trading probes. Several former employees have been implicated or pleaded guilty in several major cases, including both the Galleon Group case and the current probe focused on expert-networks. The Securities and Exchange Commission, which has investigated the firm twice for alleged insider-trading over the past three years, has two active probes against the firm, one dealing with expert-networks and the other its trading in healthcare stocks.
SAC also faces an investigation by federal prosecutors into Cohen's own trades, and congressional investigations are looking into 20 trades made by the firm, ostensibly as part of their oversight of the SEC.
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…