SAC Cuts Chicago Office, 10 Teams

Jan 11 2013 | 2:42pm 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.


In Depth

Q&A: Fund Administration Comes To The Cloud

Jul 14 2017 | 7:23pm ET

The fund administration sector has been steadily implementing new technology, such...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Rastegar: PE Real Estate Gains Momentum as Uncertainty Rises

Jul 21 2017 | 6:04pm ET

The steady march of equity markets and fundamental shift in the direction of Fed...

 

From the current issue of