Tuesday, 3 May 2016
Last updated 1 hour 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.