December 25, 2014 5:31 PM ET

Capital Markets

Company Overview of S.A.C. Capital Management, LLC

Company Overview

S.A.C. Capital Management, LLC is a privately owned hedge fund sponsor. The firm invests in the public equity markets of the United States. It invests in the public equity and fixed income markets across the globe. The firm employs various hedging strategies, including a multi-strategy, a long/short equity strategy, a global macro strategy, and quantitative strategies while making investments. The firm operates as a subsidiary of S.A.C. Capital Advisors, LP. S.A.C. Capital Management, LLC was founded in 1992 and is based in New York, New York with an additional office in Stamford, Connecticut.

540 Madison Avenue

New York, NY 10022

United States

Founded in 1992

Phone:

203-890-2000

Key Executives for S.A.C. Capital Management, LLC

Founder
Age: 58
Managing Director and Principal
Managing Director
Principal
Principal
Compensation as of Fiscal Year 2014.

S.A.C. Capital Management, LLC Key Developments

SAC Capital Agrees for $1.8 Billion Settlement with Securities and Exchange Commission

Steven A. Cohen's SAC Capital has agreed to a $1.8 billion settlement with the Securities and Exchange Commission, and the deal is expected to include at least one guilty plea. The hedge fund has already paid $616 million of the total fee as part of a previous deal. SAC Capital's settlement with SEC Cohen himself is not a defendant in this case, but the settlement doesn't protect him from civil or criminal prosecution related to the counts of insider trading. Even though SAC is expected to plead guilty as an entity, Cohen himself has not admitted to any wrongdoing. No charges have been made against Cohen, but that could change once the settlement between SAC and the SEC is completely resolved. Just as important as the fine itself, SAC will have to become a 'family business,' only managing Cohen's personal wealth. That certainly doesn't mean that SAC Capital is going out of business - Cohen's net worth is more than $9 billion - but it will no longer function as a hedge fund as it has in the past. SAC will be given a grace period to redeem the balance of its funds to clients, but the exact details aren't out yet. Once that happens, SAC will almost certainly cut back on staff. It's already become fairly clear that the London office will be shut down at the end of 2013, and it's unlikely that the New York office will come through unscathed. Some traders will have the pall of potential lawsuits hanging over them, but for anyone who isn't being accused of insider trading, there's likely to be some heavy recruiting among investment banks looking to make the most of a bull market.

SAC Capital to Plead Guilty to Securities Fraud

SAC Capital will plead guilty to securities fraud and pay over $1 billion in fines in one of the biggest criminal cases against a hedge fund.

Court Appoints Lead Plaintiff in Shareholder Lawsuit Against SAC Capital

A New York court designated a pension fund as the lead plaintiff in a lawsuit filed by shareholders of Elan Corp. against SAC Capital, a court filing showed, as the hedge fund continued to face varied legal challenges over insider-trading charges. Pension fund City of Birmingham Retirement and Relief System has been named as the lead representative party, who will act on behalf of other co-litigants in directing the lawsuit. The lawsuit, which was filed by investors in Elan's American depositary receipts, complained that SAC reaped millions in trading profit based on inside information. The legal challenge posed by Elan shareholders is another burden for SAC as it already faces redemption requests from its investors and also a U.S. government lawsuit. In the lawsuit filed by federal prosecutors, the court has already set a Nov. 4 start for the criminal trial of Mathew Martoma, a former portfolio manager at SAC Capital Advisors, on insider trading charges. Mr. Martoma, one of nine former employees of billionaire Steven Cohen's hedge fund named in a government crackdown on insider trading, will be the first to face trial. Mr. Cohen has not been accused of any wrongdoing. Prosecutors say Mr. Martoma helped CR Intrinsic Investors, an SAC fund, avoid $276 million in losses in 2008 by recommending that it sell shares of Elan Corp. and Wyeth, now owned by Pfizer Inc., based on a doctor's tips about poor drug trial results.

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