Tuesday, 31 May 2016
Last updated 3 days ago
Mar 11 2014 | 11:43am ET
SAC Capital Advisors had to look no further than its front door for its new name.
The legendary hedge fund, which is becoming a family office following its guilty plea to insider-trading charges, will change its name to Point72 Asset Management. The moniker refers to SAC's longtime headquarters at 72 Cummings Point Road in Stamford, Conn.
SAC announced the new name in a letter to employees today. In addition to offering a break with the firm's scandal-tarred past, the renaming also puts to rest speculation that SAC might choose to leave its current headquarters, which has nearly 100,000 square feet of space, as it shrinks to reflect its more constricted horizons.
"It reminds us of a sense of continuity: Our headquarters has been at 72 Cummings Point Road for more than a decade, and we anticipate it will be our home for many years to come," SAC President Tom Conheeney wrote. "Perhaps more important, the name emphasizes we point to a successful future."
The name change will take effect on April 7. Three days later, a federal judge will consider SAC's $1.8 billion plea agreement, which required the firm to cease managing outside capital. Most investor money was returned at the end of last year. Point72 will manage founder Steven Cohen's own fortune, estimated at $9 billion.
The renaming also accompanies a restructuring at SAC, which is installing a new layer of management between Cohen and Conheeney, and the firm's traders, in an effort to prevent future insider-trading violations. The firm is also shutting its CR Intrinsic Investors and Sigma Capital Management units.
Employees will now work for either Point72, EverPoint Asset Management or Cubist Systematic Strategies. New York-based EverPoint will manage stocks, while Cubist will house SAC's quantitative strategies. A fourth unit, Cohen Private Ventures, will handle Cohen's "private investments," although Conheeney did not elaborate on what, exactly, that means.
"We have been through a great deal during the past few years," Conheeney wrote. "Our new names, combined with the other changes we have announced, are intended to help us move forward."