SAC COO To Resign As Firm Becomes Family Office

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.


In Depth

Whisky Business: The Ultimate Liquid Alternative Investment

Sep 15 2014 | 7:02am ET

David Robertson knows his single-malt whisky—he was the Master Distiller at the...

Lifestyle

Hedgies Rock Out For Children's Charity

Sep 15 2014 | 8:40am ET

It's that time of year again—when hedgies trade in their spreadsheets for guitars...

Guest Contributor

The Cult of Loss Aversion: A Call to Rethink Risk in Global Macro Investing

Sep 4 2014 | 5:45am ET

In the wake of a traumatic loss, whether it is financial or personal, it is just...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

July/August 2014 Cover

In search of the ‘new normal’ at the Fed

The Federal Reserve keeps baby-stepping toward a “normalization” of monetary policy. But just what is normal?

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.