Monday, 30 November 2015
Last updated 2 days ago
Nov 26 2012 | 2:57pm ET
SAC Capital Advisors has moved to reassure investors in the wake of the arrest of a former portfolio manager for insider trading.
The $14 billion hedge fund has reached out to clients following Tuesday's arrest of Mathew Martoma. The case against Martoma is the first to link SAC founder Steven Cohen directly to allegedly illegal trading, although Cohen himself has not been accused of any wrongdoing.
SAC executives have spoken to some large clients since Martoma's arrest. The firm is emphasizing that its compliance structures are robust and that it is cooperating with the government.
"Mr. Cohen and SAC are confident that they have acted appropriately and will continue to cooperate with the government's inquiry," SAC said last week.
The latest insider-trading case tied to SAC has many clients in a quandry. One told Bloomberg News that its becoming harder and harder to stick with the firm, despite its strong returns. Some told Bloomberg that they are waiting to hear more about the charges.
The choice is made more difficult by the fact that SAC is currently closed to new investment, meaning that clients who redeem may not be able to get back in. What's more, investors can only redeem a quarter of their money each quarter, with 45-days notice. The next deadline for redemption notices is in the middle of February.
Oct 21 2015 | 10:41am ET
One of the most unique charity benefits in the hedge fund industry, A Leg To Stand On's (ALTSO's) Hedge Fund Rocktoberfest - NYC, raised nearly $500,000 last Thursday thanks to the generous support of major sponsors and nearly 1,400 attendees from the Tri-State finance, business and hedge fund communities. Read more…