Even when he loses, the billionaire investor Steven A. Cohen manages to find a way to win.
The New York Times reports that having been overlooked in the judge’s approval last week of the guilty plea entered by Cohen’s hedge fund, SAC Capital Advisors, to insider trading charges is that the firm was given 90 days to pay all of a $1.2bn penalty to federal prosecutors.
That is longer than the 30 days recommended by federal probation officials, but it is the time frame that lawyers for SAC and federal prosecutors agreed to in November, when the hedge fund entered its guilty plea.
The 90-day period means Cohen’s newly christened family office Point72 Asset Management will have more flexibility to deploy capital to the roughly 80 portfolio managers and trading teams that remain with the firm. In other words, Point72 will effectively get another full quarter in the markets to take advantage of most of that $1.2bn before it must turn it over prosecutors. (Under the plea deal, a small portion of the total penalty, $284m, is supposed to be paid within 35 days.)
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