SAC Boosts Bonuses To Retain Traders

Jan 9 2013 | 1:22pm ET

SAC Capital Advisors isn't worried only about holding on to investors.

The $14 billion hedge fund, which finds itself fending off potentially massive redemptions as it struggles with an insider-trading scandal, may be having trouble holding on to its staff, as well. The firm has increased bonuses for portfolio managers by 3%, Bloomberg News reports.

"The program is intended to retain our most valuable resource, our investment professionals," spokesman Jonathan Gasthalter said.

The raise covers SAC's stock, macro and commodity managers. Typically, SAC portfolio managers receive bonuses of between 15% and 25% of the profits they generate for the firm's investors.

SAC's International Fund returned about 12% last year.

Word of the increased bonuses comes just a day after Fox Business Network reported that SAC is "scrambling" to head off huge redemptions. The hedge fund has reportedly assured investors that it does not expect founder Steven Cohen, known to be especially hard on his staff, to be indicted, and that a large fine is more likely.

Outside clients account for only 40% of SAC's assets, and investors can redeem only a quarter of the investment at a time. Redemption notices are due next month.

The raises follow the indictment of former SAC portfolio manager Mathew Martoma for insider trading and a Wells notice from the Securities and Exchange Commission, indicating that SAC is likely to face an enforcement action.


In Depth

Q&A: Executive Recruiter Talks Hedge Fund Closures, Hiring Trends

Dec 19 2014 | 6:58am ET

This year, hedge funds have been closing at a rate not seen since the financial...

Lifestyle

Cooper-Hohn Won't Contest Divorce Settlement

Dec 18 2014 | 9:51am ET

The ex-wife of hedge fund billionaire Christopher Hohn will not contest a divorce...

Guest Contributor

Alternative Investment Funds Face A Communications Imperative

Dec 19 2014 | 6:10am ET

A handful of the top alternative investment firms on both sides of the Atlantic...

 

Sponsored Content

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

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

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.