SAC managers defect as Cohen settlement approaches

As Steven Cohen nears a settlement that may put his SAC Capital Advisors out of business over allegations of insider trading, some of his overseas portfolio managers aren’t waiting.

Bloomberg reports that Lia Forcina, who managed more than $700m at SAC Capital out of London, this month quit to join BlueCrest Capital Management, three people with knowledge of the matter said last week.

At least four other portfolio managers have recently left SAC in the U.K., according to regulatory records and people familiar with their departures.

'No one has pointed fingers at anyone in London, so they can almost say they are a different business', said Gary Goldstein, the chief executive officer of executive search firm Whitney Group, as to why the London-based SAC traders may be having an easier time getting jobs than their counterparts in the U.S. 'They aren’t being managed day-to-day by Steve'.

The departures are accelerating after a U.S. grand jury indicted SAC in July on allegations that the $14bn firm engaged in unprecedented illegal trading for more than a decade, prompting clients to pull virtually all outside cash. Cohen, whose 21-year-old firm is negotiating a settlement with the government, is likely to be barred from managing other peoples’ money and pay a fine of $1.8bn, people familiar with the matter said this month.

To access the complete Bloomberg article hit the link below:

SAC Defections Accelerate as Cohen Approaches Settlement

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image: © C.P.Storm

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