Monday, 22 December 2014
Last updated 5 hours ago
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.
Dec 1 2014 | 10:21am ET
As 2014 winds down, Northern Trust Hedge Fund Services executives took some time to share their outlook on trends facing the industry in 2015. Read more…
Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.