Friday, 26 December 2014
Last updated 2 days ago
Jan 14 2014 | 11:52am ET
SAC Capital Advisors' CFO told jurors in the Mathew Martoma insider-trading trial that the firm doesn't have much patience with traders who lose money.
Daniel Berkowitz said that SAC's contracts contain so-called "down and out" clauses, specifying exactly how much traders can lose before they are fired. "If you're down that amount, you're out," Berkowitz said.
Berkowitz was the second witness called by prosecutors, who finished their questioning of Martoma's former analyst yesterday. Both men appear to have been brought to the stand to testify about the pressure felt by SAC managers to perform—pressure that prosecutors say led Martoma to mine sources for insider information.
Martoma himself was fired from SAC in 2010 for poor performance—two years after earning the huge returns for the firm that have him on trial in the first place. The jury won't hear about it, however: U.S. District Judge Paul Gardephe barred prosecutors from telling the panel about it.
Martoma is accused of obtaining confidential information about Alzheimer's drug trials from two medical professors, using the information to make trades that earned or saved SAC $276 million. Prosecutors say his is the "most lucrative" insider-trading scheme in history.
Dec 1 2014 | 10:21am ET
As 2014 winds down, Northern Trust Hedge Fund Services executives took some time to share their outlook on trends facing the industry in 2015. Read more…
Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.