SAC Closes Parameter Capital Unit

Aug 13 2013 | 11:35am ET

SAC Capital Advisors has shut one of its trading units as the indicted hedge fund considers its future as a smaller firm.

Stamford, Conn.-based SAC closed Parameter Capital Management last week. The decision to ax the three-year-old unit came prior to SAC's indictment on criminal insider-trading charges last month.

Parameter co-founder Anil Stevens is leaving SAC with a team of eight or nine to start a hedge fund of his own, plans that have been in the works for some time, Reuters reports. The plans of Glenn Shapiro, who set Parameter up with Stevens in 2010, are unclear. For both men the past three years were a return to SAC; the two spent the interim period at Balyasny Asset Management.

Parameter focused on financial stocks. The unit had produced positive returns this year. It is not clear how much of SAC's $14 billion in assets the division managed.

SAC has denied any wrongdoing and pleaded not guilty to the insider-trading charges; prosecutors have agreed to allow it to continue operating as it fights the allegations. Still, outside investors—who have already filed redemption notices for about $5 billion this year—are expected to pull the roughly $1 billion they have left with the firm next week. And SAC is said to be mulling cutbacks, layoffs and combining business units, although President Tom Conheeney told employees in an e-mail Saturday that reports that SAC will shrink markedly are untrue.


In Depth

'Smart Beta' Funds In Regulators' Sights, Hedgies May Be Next

Mar 26 2015 | 11:11am ET

Funds that mimic strategies used by active managers for a fraction of the cost could...

Lifestyle

Study: Both Marriage and Divorce Lead to Negative Hedge Fund Performance

Mar 25 2015 | 6:51pm ET

Trouble at home leads to trouble in the market for fund managers, according to researchers...

Guest Contributor

Concerned About Your HFT Exposure? Hedge It!

Mar 26 2015 | 1:06pm ET

High-frequency trading has been a persistent storyline for several years. The trading...

 

Sponsored Content

    Mar 9 2015 | 6:35am ET

    Kelly RodriquesKelly RodriquesAs more investors look to diversify, many are beginning to use retirement funds to invest in alternative assets such as private equity and real estate. Kelly Rodriques, CEO & President of PENSCO Trust Company, explains how companies can connect with those looking to use their retirement accounts in a different way. Read more…

Editor's Note