SAC Dealing With Insider-Trading Cloud

Jan 28 2013 | 4:08pm ET

SAC Capital Advisors continues to put on a brave face as it battles insider-trading allegations and their fallout. But in spite of the firm's efforts to retain investors and employees, some cracks are beginning to show.

Citigroup's decision last week to remove SAC from one of its hedge fund platforms and to redeem $187 million in its private bank's client assets stung the firm, The New York Times reports. SAC has had a longstanding relationship with the bank, and the very public move, coming just weeks before SAC investors have to file their quarterly redemption notices, could encourage other investors to jump ship.

It is unclear whether SAC plans to retaliate against Citi by reducing or eliminating its use of the bank's services, the Times reports.

SAC spent yesterday trying to hold on to other major clients at its annual golf outing in Florida, in advance of the Morgan Stanley hedge fund conference.

But while SAC founder Steven Cohen, believed to be the ultimate target of federal investigators, may not have "looked worried" to Business Insider's Henry Blodget at Davos, the atmosphere at SAC remains tense, despite the firm's decision to boost bonuses for its traders.

"This has always been a stressful place to work," one anonymous SAC employee told the Times. "Now, it's just more stressful."


In Depth

Don’t Overlook These 6 Hybrid Cloud Concerns

Sep 14 2017 | 6:27pm ET

Cloud-based technology solutions have made tremendous inroads into the alternative...

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

Cash: An Asset In Adolescence

Aug 31 2017 | 3:34pm ET

If the investment industry has a rebellious teenager in the house today, that teenager...

 

From the current issue of