What Gets An SAC Portfolio Manager $1.3 MM? Lots Of Insider Trading, Banging Hookers And Running Around Naked While High On Shrooms

Tyler Durden's picture

Courtesy of ex-SAC portfolio manager Noah Freeman's cooperating witness testimony, we now know just what it takes to be a star trader under Stevie Cohen: i) trade on inside information at least 6 times, ii) run around San Francisco, in your underwear, high on shrooms, and iii) bang a hooker at a Taiwan bar called the Red Horse. And that's about all you need to make 1.3 million a year while in the employment of one SAC Capital.

Bloomberg brings us more details of the highly secretive, and oh so mysterious world of hedge fund high fliers:

A former SAC Capital Advisors LLP portfolio manager testified that on a 2009 business trip he ingested a hallucinogenic mushroom that resulted in his wandering around the streets of San Francisco in his underwear.

Freeman was asked about his drug history during cross- examination by David Luttinger, a lawyer for Jiau. Freeman said he smoked marijuana regularly from his senior year in high school until 2009 and said he took a hallucinogenic mushroom once while attending a conference in San Francisco in 2009.

“I was walking around looking for something to do,” Freeman said, adding that he’d bought the drug outside a concert hall. When he didn’t get an immediate reaction, he said he ate some more.

“‘Weren’t you running around the streets of San Francisco in your underwear?” asked Luttinger, who also asked Freeman why he hadn’t given authorities or hospital officials his real name when he was found wandering and disoriented.

“It was one of the worst experiences of my life,” Freeman said. “I was worried I was going to get in trouble with SAC.”

Then there is the whole insider trading thing...

Luttinger closely questioned Freeman about the number of times he committed insider trading based on material, nonpublic information while at Sonar Capital.

“Approximately a dozen where I’m totally confident the information was material and nonpublic,” Freeman said.

“What about your time at SAC Capital?” Luttinger asked.

“Focusing on only the ones where there was no question of a gray area, I would say perhaps half a dozen,” Freeman said. “Again, my trading style was faster there, so I don’t remember quite as well.”

But wait, there's more:

Was it your experience that people working in companies based in Taiwan were looser with their financial information and sales data?” Luttinger asked.

“Yes, they were,” Freeman said.

Luttinger asked Freeman if he ever paid for prostitutes for his sources, citing a report by the Federal Bureau of Investigation describing an incident at a karaoke bar in Taiwan called the Red Horse.

“Didn’t you purchase a prostitute?” Luttinger asked.

“No,” Freeman said. “The conversation was conducted in Chinese. I collected a large bill and I was never sure what happened.”

He said the bill totaled “a couple of thousand dollars,” and he submitted it to his assistant at Sonar Capital who “sorted it out.”

But wait, there's even more:

Last week, Hyland disputed Freeman’s testimony, saying that
“any statement that Sonar Capital used insider trading as a
business model is categorically false.”

Just like SAC has said any statement about SAC is "categorically false."

As for the bottom line:

Freeman, who said his contract at SAC Capital guaranteed him a minimum compensation of $1.3 million.

And now you know the mystery behind the hedge fund facade: insider trading, lots of drugs, occasionally running around a major metropolis in your boxers, and hookers. The rest is the daily commute.

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ILikeBoats's picture

Perhaps the "golden handcuffs" were something more than a metaphor ...

Blano's picture

I'd take that gig.

malikai's picture

I've just applied. If you get in my way, you're dead.

AUD's picture

Shit, I'm in the wrong game.

lizzy36's picture

Fucking rookie error, ingesting more, when the first batch hasn't been digested.

Stevie, scrapping the bottom of the barrel with this dude.

bonddude's picture

Spent half the night picking holographic fruit off the wall. Yep i've seen rookies before.

Village Idiot's picture

Rookie moves can also be the best of times. I remeber running around with my best buddies in a 1974 LTD convertible. We pulled up on the bluffs next to Hoag Hospital and howled like wolves under the methane gas blowoff tower. The flames blowing out of the tower, moon full in the sky...very animalistic.Ran in to some girls. They dug the whole wolf thing. Good times.

RF's picture

V.I., you are dating yourself, talking about the bluffs at Hoag. You old enough to remember the Rendezvous?

Best regards,


ToNYC's picture


Stevie knows to take the sacraments in the church of the woods and water..woulda' saved a good night...hookers? paying for sex is a dog's game. The guy's just not experienced, that's all folks.

metalsman22's picture

Ah, just like the good ole days ;)

JLee2027's picture

"Boxers and Hookers"

Now that's a classic.

Cheesy Bastard's picture

If you think she can wrestle, you should see her box.

Problem Is's picture

"Boxers and Hookers"

Stevie Cohen says now that's classy...

rockraider3's picture

That reminds me of Model and Bottles... the video that the limp dick investment banker put out.


King Durian's picture

He should just at this point retire and go to Thailand where he can blend in with the other monger farangs. That way he can run around with 2 hookers in Pattaya on his arm on LSD and his career won't be fazed. Hell, it might even help for a PR tool.

Spitzer's picture

I am on the way to Pattaya actually.

Its a really nice place. 30 golf courses, big shopping malls,


sneering nihilist's picture

big shopping malls = nice place.


now THAT is sarcasm! well done!

gwar5's picture

The Pattaya miracle mile....

They have a lot more than 30 rounds of golf in Pattaya, Spitz. You know the drill. Make sure there's no junk in the front first so your putter doesn't go all wobbly during the backswing. Have fun.


Almost forgot -- my avatar is a picture of the elephants one hour above Chang Mai, Thailand.

williambanzai7's picture

Just make sure you get your Sois straight. And I do mean straight.

Goldtoothchimp09's picture

NEVER hire a trader that can't handle his drugs!  geesh

yabyum's picture

Sounds like my entire 20's minus the big buxs.

Ben Fleeced's picture

The homeless are not allowed in the Lincoln Tunnel. Sign says no pedestrians. Ooops. Ended up being banged by a Tennessee art dealer in the Holiday Inn on West 54th. THAT"S my 20's. This shit is nothin'. Clean black leather with a McDonalds straw. Bitchessssss!

Manthong's picture

I need someone to "sort out" my expenses, too.

buzzsaw99's picture

a slight twist to hookers and cocaine.

King Durian's picture

Enjoy! Have some durian for me while you're there!

nmewn's picture

Psylosiben bithez!

Ben Fleeced's picture

everything tastes better on a ritz.

ugly_avatar_Muir's picture

Freeman, who said his contract at SAC Capital guaranteed him a minimum compensation of $1.3 million.

And now you know the mystery behind the hedge fund facade: insider trading, lots of drugs, occasionally running around a major metropolis in your boxers, and hookers. The rest is the daily commute.

___ Is this a fucking great Country, or what!!? _
holdbuysell's picture

Forget about confidence in the markets, we have a much larger sociological problem to worry about.

Truly sad individual.

holdbuysell's picture

Like I said...a sociological problem...I didn't even have to cue you, and you responded in spades.

Much thanks.

Oh regional Indian's picture

Interesting what response a clear-truthy statemement will bring eh holdbuy? 

You puritan you! ;-)


swamp's picture

What's also sad is that so many think degrading themselves is cool. 

What ever happened to dignity?

Caviar Emptor's picture

It's a proven formula, don't mess with it! It's what made this country great. 

gwar5's picture

Bang Dai Ho: I Immune too. Took shots. I swear under oath Noah Freeman is great big Weiner.



I am a Man I am Forty's picture

this guy was partying his ass off and is acting like he is one of the innocent victims of Zack Galifianakis

Conceptwizard's picture

"America will never be destroyed from the outside. If we falter and lose our freedoms, it will be because we destroyed ourselves."
Abraham Lincoln

holdbuysell's picture

And thus my comments above...sociologically, we're degenerating from within.

Ben Fleeced's picture

Yes. Everything we are experiencing has NEVER happened before. END OF THE WORLD AS WE KNOW IT. Save my chidren, oh my sick children save them so my family name can survive.

Epic fail!!!!!!

holdbuysell's picture

Yes, history (nearly) repeats itself. What's your point?

swamp's picture

Rome is burning (so is dignity) and he gets back slapped by all the common (male) sluts.

Itsalie's picture

"And now you know the mystery behind the hedge fund facade: insider trading, lots of drugs, occasionally running around a major metropolis in your boxers, and hookers. The rest is the daily commute."


That is the main reason (apart from tax evasion) why the hedgies are all volunteers in their Asian outposts HK and Singapore now, edge of the empire, Bang cock, Manila and Jakarta all beckon, within 2 hours from a really good time, even the FBI folks cannot resist the cheap and good massage joints (no pun), anonymity assured. Someone once chanced across a group of farlangs comprising hedgies hosted by squiddies fixers, and looked over by some secret agents who themselves could not resist frolicking naked in some foam parties with an entire harem of naked local girls in one of these seedy cities in the far east. So in case you need to know who hedgies or computers makes decisions during asian trading hours...





Chuck Walla's picture

Tell ya' what, having hung around Bangkok, those girls smell funny.