Thursday, 31 July 2014
Last updated 15 hours ago
Jan 11 2013 | 1:42pm ET
SAC Capital Advisors is quitting the Windy City.
The $14 billion hedge fund giant said it would close its Chicago office and dismiss the four teams based there. The decision to leave the U.S.'s third-largest city is reportedly not related to the insider-trading probe enveloping the firm.
SAC is known for the high turnover among its portfolio teams and for the short leash founder Steven Cohen keeps them on; it is not uncommon for even formerly successful portfolio managers to be fired after a period of losses. All told, SAC dismissed 10 teams last week, including the four in Chicago.
SAC hired about 24 new teams least year.
The Stamford, Conn.-based firm, which has offices in New York and Boston, had been mulling an exit from Chicago since before November, when former portfolio manager Mathew Martoma was arrested for insider-trading, The Wall Street Journal reports. "We regularly review our operations and given the limited opportunity in the region, we didn't believe it made sense to have a separate office in Chicago," SAC spokesman Mark Herr said.
In addition to its U.S. offices, SAC has bases in Beijing, Hong Kong, London, Singapore and Tokyo.
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…