SAC Capital's 'down and out' policy for firing employees

If you were down for long, you'd be out the door.

The New York Post reports that hedge fund SAC Capital Advisors, known for its punishing culture, had a name for its policy of firing money-losing portfolio managers: 'Down and out'.

Dan Berkowitz, the CFO at Steve Cohen’s giant hedge fund, said the Stamford, Conn., firm’s slang was spelled out clearly in its employment contracts.

'If (a portfolio manager) lost a certain percentage of the capital we’d given them (to manage), the contract gave us the right to terminate the employment', Berkowitz told the jury while testifying Monday at the trial of Mathew Martoma, the former SAC portfolio manager accused of insider trading.

Hit the link below to access the complete New York Post article:

SAC losers were 'down & out'ers

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