Sunday, 28 August 2016
Last updated 1 day ago
Nov 22 2013 | 11:48am ET
SAC Capital Advisors is becoming a family office—and in that line of work, a chief operating officer is apparently not required.
The hedge fund, which pleaded guilty to insider-trading charges earlier this month and is in the process of returning outside capital, told employees yesterday that COO Solomin Kumin would leave the firm in January. The internal memo is also the first time that SAC has formally said it would become a family office.
"We are now moving from a firm which manages external capital to a 'family office' that will manage my capital and employee capital only," SAC founder Steven Cohen wrote. "We will not need the same degree of business development or investor relations as before. After taking a hard look at the evolution of his primary areas of responsibility, Sol has decided to resign, effective Jan. 31, 2014."
"The outside world tends to focus on me, but our success has been built by many people, one of whom is Sol," Cohen wrote. "He has been responsible for transforming our business development and investor relations functions and has helped create our global strategy and footprint. Without his tireless work, we would not have had a strong London presence or our current business in Asia."
Facing a future as a smaller firm, however, SAC has begun to undo some of Kumin's handiwork; the firm said last month that it would close its London office. Kumin was also among five SAC employees called to testify before a grand jury considering charges against the firm.
For his part, Kumin said he planned to return to his native Boston in the summer. "I am looking forward to taking a break, to recharging my batteries and to figuring out what the next chapter of my life will look like," Kumin said.
Kumin has worked at SAC for nine years, joining the hedge fund after stints at Lazard Asset Management and AllianceBernstein.