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SAC Loses Anchor Investor As Noose Tightens Some More

Tyler Durden's picture





 

First it was Citi, then SocGen, now a third key investor has decided to pull their money from SAC - the once vaunted hedge fund which now everyone is now avoiding like the plague, and for which the only question now is "when" - when will Stevie close down shop, and will this happen before or after the paddywagons finally arrive at 72 Cummings Point road.

The WSJ reports: "Titan Advisors LLC recently told clients that it had decided to withdraw its entire investment from SAC, said clients who received phone calls from Titan.  "They've told us they still think SAC is a good firm but Titan doesn't need the headline risk, and we sure don't," said Tom Taneyhill, executive director of the Fire & Police Employees' Retirement System of the City of Baltimore, on Friday.  Société Générale SA, which has client money in SAC through its Lyxor asset-management arm, also decided to pull its money from SAC, The Wall Street Journal reported earlier this month. At the time, an SAC spokesman declined to comment. Titan's departure is significant given SAC's long-standing relationship with one of Titan's founders. Titan co-founder George Fox began investing in SAC in the mid-90s, several years after Mr. Cohen started what became the firm in 1992."

And while an avalanche of outside money is now being pulled out of SAC with breathtaking speed, one man - the person who made the abysmal sequel to Wall Street almost singlehandedly possible - Anthony Scaramucci, and whose livelihood depends on the credibility of SAC, continues to think Cohen is "not one of the rogues." We'll see how long this particular fund of funds lasts once its owner's naive posturing, too, is proven wrong.

In the meantime the noose continues to tighten:

The insider-trading indictment of ex-SAC Capital Advisors LP portfolio manager Mathew Martoma sets in motion a criminal trial process that puts new pressure on him to cooperate with the government’s investigation of the hedge- fund firm founded by billionaire Steven A. Cohen.

 

“It’s another step on the government’s march into Cohen’s office,” Erik Gordon, a professor at the University of Michigan Law School and Ross School of Business, said in an e-mail after the indictment. “Given the prosecutors’ success in getting convictions and serious jail sentences, it’s time for anyone at SAC who is connected with insider trading to start having nightmares.”

So... all of them?

The bigger question is how much stock volume will remain once SAC is shut down, in a market already best known for ridiculously low volume - but at least one having "liquidity" courtesy of the same HFTs that bring you nightly ES flash crashes possible. And how much in "soft dollar"-based commission will Wall Street's already desperate for revenue Sales teams lose once the firm responsible for 5-10% of daily NYSE volume is gone.

 


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Sat, 12/22/2012 - 14:51 | Link to Comment falak pema
falak pema's picture

when thieves fall out.

Sat, 12/22/2012 - 15:51 | Link to Comment CheapBastard
CheapBastard's picture

Free Corzine!

Sat, 12/22/2012 - 23:21 | Link to Comment ball-and-chain
ball-and-chain's picture

Sadly, I trust no one with my money.

I keep it under my mattress.

I don't want to invest in real-estate.

I'm afraid of gold and silver because global govenments can control the price.

There really is no where to go.

http://www.angrysinner.blogspot.kr/2012/12/yesterday-i-walked-five-miles-to-my.html

Sun, 12/23/2012 - 11:22 | Link to Comment Stock Tips Inve...
Stock Tips Investment's picture

I agree with you. These cases raise, increasingly, distrust and disappointment among investors. We have to fight openly against such cases of corruption and market manipulation. The authorities have to be ruthless with these people who want to get rich breaking the law. Meanwhile, thousands of people and institutions, we try to play the Wall Street game, respecting the rules of the game. Why do we tolerate these corrupt? Why should we let them destroy the foundations of free trade? Why do we allow handling such an important market for the economy of our country?

Sat, 12/22/2012 - 14:57 | Link to Comment AldousHuxley
AldousHuxley's picture

It is all ponzi based on Fed money printing and population increase.

 

government owns money printing and population control. robs hedge funds to save banks.

 

 

Sat, 12/22/2012 - 15:01 | Link to Comment palmereldritch
Sat, 12/22/2012 - 15:10 | Link to Comment Freddie
Freddie's picture

Hopefully these scum rats will start eating each other.   Stevie Cohen is scum.  

I love how the Tyler(s) skewer and ridicule these vile dishonest rat shit bastards every day.

Also like how the Tyler(s) spotlight videos/articles from good guys and gals like Ray Dalio, Hugh Hendry, Kyle Bass, Santelli, Faber, Rogers, Ann Barnhardt, JIM GRANT, and those who are not evil rat bastards like Stevie Cohen and Corzine.

Here is Ann Barnhardt attacking Corzine the rat.

http://www.youtube.com/watch?v=iq0rxziwC_c

Sat, 12/22/2012 - 17:45 | Link to Comment Miss Expectations
Miss Expectations's picture

I come here for the calamari.

Sun, 12/23/2012 - 11:40 | Link to Comment shovelhead
shovelhead's picture

 Hyuk, hyuk, hyuk.

I enjoyed that.

I wish they had some squid flambe' on the menu.

Sat, 12/22/2012 - 15:05 | Link to Comment francis_sawyer
francis_sawyer's picture

Cohen ~ Clean as the driven snow... Shoulda have chose a simpler life of DJing bar-mitzvahs, but couldn't resist the temptation of the big time...

Sat, 12/22/2012 - 15:07 | Link to Comment Publicus
Publicus's picture

Time to confiscate SAC assets to pay down the national debt! LOL

Sat, 12/22/2012 - 15:26 | Link to Comment zhandax
zhandax's picture

Too late; should have done that in 2008 just before pulling the plug on AIG, FNMA, FHLMC, and the 5 banksters.

Sun, 12/23/2012 - 11:55 | Link to Comment cifo
cifo's picture

Start with the shark tank.

Sat, 12/22/2012 - 15:18 | Link to Comment spanish inquisition
spanish inquisition's picture

..."it’s time for anyone at SAC who is connected with insider trading to start having nightmares..."

Just the women and darker skinned men.....

Sun, 12/23/2012 - 06:45 | Link to Comment jeff montanye
jeff montanye's picture

there certainly seems to be some of that going around (ironic given obama).  also when will the few that the feds do catch make a bigger deal of the get out of jail free (net: feds pay them) cards issued to all the too big to fail (e.g. hsbc money laundering for drug cartels and terrorists -- feds' language)?

two-tiered justice has its price: loss of legitimacy. chinese dynasties learned it, the british in the american colonies learned it, louis xvi learned it ....

Sun, 12/23/2012 - 11:29 | Link to Comment Stock Tips Inve...
Stock Tips Investment's picture

I agree with you! We have to stop immoral and unscrupulous people continue to participate in such an important market for our economy.

Sat, 12/22/2012 - 15:51 | Link to Comment Seasmoke
Seasmoke's picture

what are these public leeches and their pension ponzi going to do ??????

 

"They've told us they still think SAC is a good firm but Titan doesn't need the headline risk, and we sure don't," said Tom Taneyhill, executive director of the Fire & Police Employees' Retirement System of the City of Baltimore, on Friday.

Sat, 12/22/2012 - 17:15 | Link to Comment Freddie
Freddie's picture

LOL!  Baltimore Scumball Union Pension plan investing with rat bastard Stevie Cohen and his "SAC." 

You know the islamic in the wh**e hut is throwing Stevie under the bus with his gefilte fish when Baltimore sh*thole is jumping ship.   My guess is Stevie missed making his protection payments.

Stevie will find that ex-O bundler Phil Falcone under the bus with his meth head wife Lisa.

http://thumbs.mugshots.com/gallery/images/59/96/Lisa-Marie-Falcone-mugsh...

Poor Phil.

Sun, 12/23/2012 - 12:15 | Link to Comment Disenchanted
Disenchanted's picture

 

 

"islamic"...ROFLMAO

You know the drill Freddie "islamic" = -1

 

Here's your 'islamic' the other day...what a great example of keeping the State and religion separated. Oh that's right one religion is exempted, my bad I forgot.

 

Another old friend, Rabbi Wolf, gives another kind of testimony. Obama, he says, is "embedded in the Jewish world."

 

Sat, 12/22/2012 - 15:52 | Link to Comment Joebloinvestor
Joebloinvestor's picture

If they can't indict you they drive away your clients.

I would like to see SAC sue the shit out of the SEC/gov and win big time for harassment.

Sort of like an," The Empire Strikes Back" moment. 

Sat, 12/22/2012 - 16:43 | Link to Comment LeBalance
LeBalance's picture

if a sac can attract no baubles does it serve a purpose?

/rhetorical/

Sat, 12/22/2012 - 16:45 | Link to Comment Blankenstein
Blankenstein's picture

Running for the exits before the SAC explodes, but it isn't so easy to get away.  

Citi, SocGen, & Titan - one word for you  - CLAWBACKS

Sat, 12/22/2012 - 16:45 | Link to Comment Brokenarrow
Brokenarrow's picture

Suits will be coming against gsec. And, every other wall st scam that has lasted for ten years. I, personally, want to see "Stevie" bend over by Big Jamba in a federal pen.

Sat, 12/22/2012 - 17:16 | Link to Comment Freddie
Freddie's picture

Anyone remember that it was The JP Morgue (aka Chase Rockefeller klan) who pulled the plug on Bernie Madoff.  The JP Morgue jumped ship first at Madoff.  They effing knew.

Why?  My guess is The JP Morgue realized that Bernie could no longer keep the ponzi going and The JP Morgue wanted out first.  

Wasn't it also The JP Morgue who looted MF Worldwide through London for Corzine?

Sort of like Skilling bailing out of Enron. This was after Skilling knew that jim Chanos was onto Enron.

Sat, 12/22/2012 - 18:26 | Link to Comment l1b3rty
l1b3rty's picture

Don't Worry ZH'ers, the world is still doomed! 

http://silvervigilante.com/dont-worry-the-world-is-still-doomed/

Sat, 12/22/2012 - 18:36 | Link to Comment formadesika3
formadesika3's picture

The insider-trading indictment of ex-SAC Capital Advisors LP portfolio manager Mathew Martoma sets in motion a criminal trial process that puts new pressure on him to cooperate with the government's investigation of the hedge-fund firm founded by billionaire Steven A. Cohen.

 

Little pressure required. No omerta among the J-mafia.

Sat, 12/22/2012 - 18:48 | Link to Comment bugs_
bugs_'s picture

ban4life

Sat, 12/22/2012 - 18:55 | Link to Comment tuku2400
tuku2400's picture

So NYSE volume is incumbent upon inside information, interesting.

Sat, 12/22/2012 - 19:07 | Link to Comment buzzsaw99
buzzsaw99's picture

cohen = pure as the driven slush

Sat, 12/22/2012 - 21:40 | Link to Comment ThisIsBob
ThisIsBob's picture

Its a first in the history of scullery:  Every dish in the stack is dirty except the top one.

Sat, 12/22/2012 - 23:17 | Link to Comment BlueStreet
BlueStreet's picture

If Scaramucci is taken down I wonder if they will confiscate and auction off his closet full of elevator shoes. 

 


Sat, 12/22/2012 - 23:36 | Link to Comment Smiddywesson
Smiddywesson's picture

Hello, I am a hedge fund manager.  I have absolutely no reporting requirements and am not being policed.  In fact, if you are a qualified investor, you can't sue me for ruining you.  Please entrust your life savings to me and I will return just as much or more than the other gamblers who run unregulated hedge funds, until we blow up.  

You can't run a hedge fund without gambling as much as the other gamblers, otherwise your customers learn at a cocktail party that some other gambler is taking bigger chances and they take their money elsewhere.

There's a lot of rich people about to learn that they are not as smart as they thought they were, nor as rich.  

For the poor slobs with a pension in one of these jackel's hands, that flushing sound is your retirement.

Sun, 12/23/2012 - 07:06 | Link to Comment falak pema
falak pema's picture

the trouble about being rich is you have to kill yourself to get there; both physically and morally, and once rich you kill yourself thrice over again, thinking about all you can lose, envying those who are richer and seeing it waste away; as now your'e exposed to erosion more than the other fool will his pockets empty of surplus wealth.

Nothing kills a rich man more than fear, envy and attrition of his surplus money.

As they say, the rich never sleap easy if they THINK they are rich for that reason. 

As they have lost the greatest blessing of life : being carefree and mind at ease. 

Just having enuff to get around life's chores is all you need; the basic essentials. The rest is poetry! 

Sun, 12/23/2012 - 01:57 | Link to Comment resurger
resurger's picture

Cohen = Fucking douchebag insider

Sun, 12/23/2012 - 03:32 | Link to Comment CharliePrince
CharliePrince's picture

stevie  will  buy his way out..with out admiiting or denying anything  . justice for sale..

Sun, 12/23/2012 - 08:57 | Link to Comment Brokenarrow
Brokenarrow's picture

If you could ever get inside Citadel and conduct a real audit? You would find a fraud the scale of Madoff. This wont happen because Griffen is doing the fed's work. Try and withdraw you capital from them.

Do NOT follow this link or you will be banned from the site!