SAC To Address Insider-Trading Case With Staff

Nov 29 2012 | 3:43pm ET

SAC Capital Advisors will meet with its staff this afternoon to address the growing cloud surrounding the firm.

The hedge fund planned to meet with some of its 1,000-strong staff after the markets close today, CNBC reports. The meeting—the second such gathering since former portfolio manager Mathew Martoma was arrested last week and charged with insider trading—follows SAC's disclosure to clients yesterday that it had received a Wells notice from the Securities and Exchange Commission, indicating that the regulator plans to bring civil charges against the firm.

Today's meeting will address questions about the insider-trading probe the firm faces and its potential ramifications for firm founder Steven Cohen. Cohen was not named as a defendant in either the civil or criminal case against Martoma, but media reports say that he could face SEC charges. Cohen was not referred to by name in either case against Martoma, but is the person identified as "Portfolio Manager A" and the "owner" of the hedge fund Martoma worked for.

Martoma is accused of earning SAC $276 million trading on confidential information about Alzheimers' drug tests. He has refused to cooperate with prosecutors against Cohen.


In Depth

Q&A: High Conviction, Low Correlation

Oct 30 2014 | 7:35am ET

Acadian Asset Management's numbers are big: over $70 billion in assets under management...

Lifestyle

Ex-Hedgie Steyer Gives $56M To Climate Action Super PAC

Oct 28 2014 | 9:23am ET

Retired Farallon Capital founder Tom Steyer has poured almost $56 million into his...

Guest Contributor

Hedge Funds Weather A Data Management Perfect Storm

Oct 22 2014 | 12:28pm ET

From a regulatory standpoint, nearly every development since the crisis has placed...

 

Videos

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

October 2014 Cover

The yield curve and stock market response

Traders form habits quickly. Understanding these and their effects can better equip us to decipher actual market moves.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.