SAC Readying Family Office Plans

May 28 2013 | 3:03pm ET

SAC Capital Advisors is preparing plans to become a family office amidst word that a fifth executive at the hedge fund has been subpoenaed to appear before the grand jury considering criminal insider-trading charges against the firm.

Stamford, Conn.-based SAC is creating a plan to return outside capital, Fox Business reports. Sources tell the network that an announcement that SAC will become a family office, managing only founder Steven Cohen's fortune, will come within weeks.

It is unclear whether the firm is considering any other options, according to Fox, but the return of outside capital would likely lead to a large number of layoffs at SAC, which employs about 1,000 people.

Prosecutors are considering racketeering charges against SAC as a criminal enterprise. To avoid those or any other charges, Cohen has been mulling the shut-down as part of an offer to prosecutors.

Cohen's billions make up well over half of SAC's $15 billion in assets—a figure that is likely to drop further next month, when the firm is expected to suffer more than $1 billion in redemptions.

Cohen and five other top SAC executives have been subpoenaed. The latest to join the group is Anthony Vaccarino, a portfolio manager at the firm. Earlier reports indicated that firm president Tom Conheeney, chief operating officer Solomon Kumin, compliance chief Steve Kessler and trading chief Phillipp Villhauer have received subpoenas.

In Depth

Related-Company Fees: Normal Industry Practice or Conflicted Compensation?

Nov 11 2015 | 4:23pm ET

Regulatory agencies as well as investors are increasingly exploring whether certain...


Ferrari Roars in Wall Street Debut

Oct 21 2015 | 4:28pm ET

Shares of supercar maker Ferrari jumped as much as 15 percent to a high of nearly...

Guest Contributor

Private Debt - What is the Opportunity?

Nov 11 2015 | 3:28pm ET

In this contributed article, Rob Allard, founding partner of Firebreak Capital...


Editor's Note

    Oct 21 2015 | 10:41am ET

    One of the most unique charity benefits in the hedge fund industry, A Leg To Stand On's (ALTSO's) Hedge Fund Rocktoberfest - NYC, raised nearly $500,000 last Thursday thanks to the generous support of major sponsors and nearly 1,400 attendees from the Tri-State finance, business and hedge fund communities. Read more…