Cohen Gets Extra Quarter To Trade Fine Money

Apr 17 2014 | 10:50am ET

The former SAC Capital Advisors will get to play around with most of the $1.2 billion it owes the government for a little while longer.

The hedge fund, now a family office dubbed Point72 Asset Management, agreed to pay $1.8 billion to settle criminal insider-trading charges last year. That plea agreement was accepted by a federal judge last week.

Under the terms of the deal, Point72 will be credited for the $616 million it paid to settle Securities and Exchange Commission allegations last year. And while most criminal settlements require payment within 30 days, Point72 will have to pay only $284 million within 35 days. It will be allowed to trade the remaining $900 million or so for 90 additional days.

That’s not an insignificant sum for the firm, which is expected to have between $9 billion and $10 billion in assets after the fine is paid, and Point72 could lever it, meaning it would have more than $3 billion in extra money to trade at current leverage ratios.

SAC has returned substantially all of its outside capital to investors and will manage founder Steven Cohen’s money—and that of staffers—exclusively under the terms of the settlement.


In Depth

GSAM's Papagiannis: Liquid Alternatives For The Long Run

Apr 21 2017 | 8:44pm ET

Interest in liquid alternatives cooled a bit last year amid a broad shift in investor...

Lifestyle

Aston Martin Returns To Debt Market As DB11 Drives Turnaround

Mar 31 2017 | 5:21pm ET

James Bond’s preferred carmaker is returning to the public debt markets for the...

Guest Contributor

Debunking Conventional Investment Wisdom (Part II)

Apr 17 2017 | 5:56pm ET

The alternative investment industry is currently replete with buzzwords around data...

 

From the current issue of