Embattled hedge fund giant SAC Capital is moving to strengthen its compliance protocols and adopt stricter policies against insider trading, according to a letter to shareholders from founder Steve Cohen shared with CNBC.
Stung by an insider trading scandal involving a former trader, the $15 billion hedge fund told investors that it would soon institute financial clawbacks from any employee that is linked to misconduct that leads to sanctions against the firm. In addition, SAC is beefing up its compliance staff, and erecting new firewalls between traders and the employees of publicly-traded companies.
The new policies come as nervous investors pulled nearly $1.7 billion from the hedge fund, and just ahead of a May 15 deadline at which capital can again be redeemed.
--Reported by CNBC's Kate Kelly; written by Javier E. David
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