Stevie Cohen’s beleaguered ‘hedge’ fund SAC Capital has decided to shutter its London office:
- *SAC SAID TO PLAN CLOSING DOWN LONDON OFFICE BY END OF YEAR
- *SAC SAID TO EMPLOY MORE THAN 50 PEOPLE IN LONDON OFFICE
- *SAC SAYS IT CUT SIX U.S. PORTFOLIO MANAGER POSITIONS THIS WEEK
But perhaps, even more importantly – and some suggested responsible for the collapses in several major tech/momo names this morning:
- *SAC SAYS ITS SIMPLIFYING FIRM, REDUCING CAPITAL ALLOCATIONS
With stock prices held up by the marginal levered hedge fund buyer, SAC’s size makes their liquidations as big a threat as anything to this fragile market.
SAC Capital Advisors LP plans to shut down its London office as the $14 billion hedge-fund firm founded by Steven A. Cohen scales back in the face of insider-trading allegations by U.S. prosecutors.
“As our negotiations with the government have unfolded, it has become clear to us that the outcome the government is demanding is likely to have a greater than first anticipated impact on the firm,” Conheeney wrote. “We have concluded that we must operate as a simpler firm and reduce our capital allocations.”
via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/FgwpDMuSz-4/story01.htm Tyler Durden