The SEC just will not lay off this particular hedgie…
Washington D.C., Jan. 8, 2016 — The Securities and Exchange Commission today announced that hedge fund manager Steven A. Cohen will be prohibited from supervising funds that manage outside money until 2018 in order to settle charges for failing to supervise a former portfolio manager who engaged in insider trading while employed at his firm. In addition, Cohen’s family office firms will be subject to SEC examinations and the firms must retain an independent consultant to conduct periodic reviews of their activities to ensure compliance with securities laws. Read more
This was coming from the Wall Street Journal late on Tuesday:
Federal prosecutors are preparing to announce criminal charges as early as this week against SAC Capital Advisors LP, the hedge-fund company that has been the target of a multiyear investigation into alleged insider trading, according to people familiar with the matter…
He is obsessed with trading, and he trades to win. If he cruises the Caribbean or flies off to London, an SAC advance team races ahead of him to set up trading screens…
- New York Times, A Fascination of Wall St., and Investigators, Dec 2012 Read more
Friday was a very very hot day on the East Coast. We wonder if they’re staying cool on SAC’s trading floor this afternoon…
Click for the SEC’s order alleging that Steve Cohen “failed reasonably to supervise” two SAC traders involved in trading Elan and Dell stock. It’s not the kind of claim against Cohen which many could really have been expecting in this sprawling, almost absurdly diffident insider-trading investigation. Read more
The question is rhetorical.
Back in December we were able to share a long, angry letter penned by Vincent Tchenguiz concerning the legal dispute between the Tchenguiz brothers and the Serious Fraud Office. Read more
SAC Capital, the $14bn hedge fund run by Steve Cohen, has quietly ended the practice of investing in hedge funds started by former employees, the FT says, citing people close to the firm. The decision, made in 2008 but not disclosed until now, is one of several changes SAC has made in recent years to shore up its reputation as it has come under scrutiny for potential insider trading, these people say. These changes also include scaling back Mr Cohen’s direct contacts with company officials and Wall Street analysts and brokers. In addition, after a federal investigation began into expert networks, which connect industry insiders to investors, SAC in 2007 barred its employees from talking to a consultant who had worked at a public company in the previous six months.
A US senator is investigating about 20 instances of suspicious trading by SAC Capital, the hedge fund run by billionaire Steve Cohen, amid a recent crackdown on insider trading, the FT reports. Charles Grassley, a Republican from Iowa and the senior member of the Senate Judiciary Committee, previously had pressed the Financial Industry Regulatory Authority for information on “the potential scope of suspicious trading activity at SAC Capital.” In a letter sent on April 26, Mr Grassley asked Richard Ketchum, Finra chairman, for details of all referrals related to SAC Capital sent to the brokerage regulator since January of 2000. Finra sent Mr Grassley information on about 20 suspicious instances of trading by SAC and SAC executives met with Mr Grassley’s staff earlier this month.
Steve Cohen, head of the $12bn SAC Capital hedge fund, has assured his investors that they will suffer “no financial impact” as a result of a wide-ranging federal investigation into insider trading on Wall Street, the FT reports. SAC has been subpoenaed along with several other hedge funds. Cohen told his investors in the letter that they would not suffer losses, or incur costs related to the probe, with the management company instead bearing any expense. The potential damage to a fund from association with the investigation can be considerable. FrontPoint, a $7bn fund which has not been accused of wrongdoing, closed a $1.2bn healthcare fund after a portfolio manager was alleged to have received tips about a drug trial.
Steve Cohen, head of the $12bn SAC Capital hedge fund, has assured his investors that they will suffer “no financial impact” as a result of a wide-ranging federal probe into insider trading on Wall Street, reports the FT. SAC, based in Stamford, Connecticut, has been subpoenaed along with several other hedge funds and mutual funds as part of the investigation by Preet Bharara, the US attorney in Manhattan. Neither SAC nor any of its employees have been accused of wrongdoing. Cohen said in a year-end letter to investors sent on Jan 31 that they would not suffer losses relating to the probe and that the management company would bear any resulting expense.