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

Q&A: SkyBridge’s Anthony Scaramucci Readies For Wall Street Week Debut

Apr 16 2015 | 12:56pm ET

Anthony Scaramucci, founder and managing director of asset management firm SkyBridge...

Lifestyle

Puerto Rico Woos The Rich But So Far Gains Little

Apr 17 2015 | 2:45am ET

Hedge fund manager Rob Rill grins. He has just had word that U.S. financial regulators...

Guest Contributor

Minnesota Supreme Court Rejects The Ponzi Scheme Presumption: Lenders Claw Back Some Of Their Own Rights

Apr 17 2015 | 9:23am ET

A recent court ruling in Minnesota has put an end to the Ponzi Scheme Presumption...

 

Editor's Note