SAC Capital Advisors, synonymous with an insider trading scandal that has consumed the hedge fund industry, will soon cease to exist as Wall Street has known it.
The New York Times reports that Steven A. Cohen’s 22-year-old hedge fund - once the envy of Wall Street - is completing plans to change its name and its corporate structure by mid-March, according to people briefed on the matter, a rebranding effort that comes after SAC pleaded guilty last year to criminal insider trading charges.
In the spirit of the plea deal, which ordered SAC to shut its doors to outside investors, the new firm will condense into fewer legal entities and will not accept any external money. The slimmed-down operation, the people said, will operate as a so-called family office that manages employee money and an estimated $9bn from the personal fortune of Cohen, SAC’s owner and founder.
'We have taken to heart the government’s criticisms of our business model, and as we convert to a family office we are making substantive changes', an SAC spokesman said in a statement, declining to discuss specifics of the new firm.
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image: © Jason Bachman