SAC Could Get New Name, Cut Prime Brokers

Dec 13 2013 | 3:29pm ET

SAC Capital Advisors overhaul could include a new name for the legendary hedge fund, which is becoming a family office in the wake of its guilty plea on insider-trading charges.

The Stamford, Conn.-based firm is in the process of returning outside capital, and will then manage only founder Steven Cohen's money and that of his employees. But it may not do so under its current brand.

SAC has held internal discussions about a name change, The Wall Street Journal reports. It is unclear what potential names are under consideration, or when a rebranding might come.

Should SAC get a new name, it will only be one of the major changes at the firm. SAC is also mulling whether to cut back on some of its relationships with investment banks. SAC currently has relationships with nine prime brokers, and is likely to end some of them. One that is probably on the chopping block is Deutsche Bank, which withdrew a $100 million credit line to the hedge fund after its indictment.

That move irritated SAC officials, the Journal reports.

Still, SAC brass is already looking forward to a time when it will be able to manage outside capital again. SAC President Tom Conheeney and managing director Michael Sullivan have told clients to expect a "SAC 2.0" that would manage outside capital again. That, of course, will be dependent on whether and for how long Cohen is barred from managing outside capital; the Securities and Exchange Commission is seeking to ban him from the securities industry and would have to approve a new investment-adviser registration.


In Depth

Will Liquid Alts’ Performance Sustain Future Asset Flows?

Aug 25 2014 | 10:34am ET

Liquid alternative investment funds saw the highest percentage of capital inflows...

Lifestyle

Och Funds Women In Finance Initiative At U-M

Aug 28 2014 | 3:01pm ET

Och-Ziff Capital founder Daniel Och and his wife have made a "generous donation"...

Guest Contributor

Looking Ahead: What’s In Store For Managed Futures?

Aug 22 2014 | 12:52pm ET

The last five years were phenomenal for investors in equity indices. Will the next...

 

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

The time was right

Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...

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.