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The New Name Of SAC Capital Has Been Revealed

Tyler Durden's picture




 

... And it is Point72.

Of course, those who are aware of the physical address of the firm that single handedly made and destroyed "expert networks" (and assured a daily bug sweep at every hedge fund office in New York), or better yet, have visited the firm's sprawling trading floor located at 72 Cummings Point, will know that the name is merely a derivative of the actual address.

The NYT's Matthew Goldstein reports:

In settling upon Point72 Asset Management as the name for the firm’s flagship operation, Mr. Cohen appeared to find inspiration in the address for SAC’s roughly 98,900 square-foot office at 72 Cummings Point Road. The new name, which the firm announced on Tuesday in a letter to employees, should end speculation that Mr. Cohen might seek to relocate to a less spacious building, if his new firm got much smaller than its current 850 employee work force.

 

“It reminds us of a sense of continuity: our headquarters has been at 72 Cummings Point Road for more than a decade, and we anticipate it will be our home for many years to come,” Tom Conheeney, SAC’s president, said in the letter. “Perhaps more important, the name emphasizes we point to a successful future.”

 

The new name will become official on April 7, just three days before Judge Laura Taylor Swain of Federal District Court in Lower Manhattan is scheduled to either approve or reject SAC’s guilty plea. Mr. Cohen is hoping the selection of the new name and Judge Swain’s acceptance of the firm’s plea will bring to a close an investigation into allegations of insider trading that has dogged SAC for nearly 10 years.

There's more:

  • SAC'S MULTIQUANT BUSINESS SAID TO OPERATE AS CUBIST SYSTEMATIC

Maybe they consulted the ghost of Pablo Picasso for that one. Then again, perhaps when it comes to address-based appelations, Cohen picked the only feasible option: after all going with the zip code of his trading desk adress may have been a little too reminiscent of a convict's inmate number: 06902. And that would hardly inspire confidence in the New and Improved Stevie A. Cohen.

 

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Tue, 03/11/2014 - 10:01 | 4534082 Yoki
Yoki's picture

06902  = 69 x 2 - makes sense.

Tue, 03/11/2014 - 10:17 | 4534119 MillionDollarBonus_
MillionDollarBonus_'s picture

Queue the whining ZH day traders moaning about how the successful and competent traders (hedge funds and investment banks) are 'distorting' the markets and contributing to their poor performance. Look, if you are losing money the first step to success is to admit that you're an amateur trader. Once you've admitted that fact, then you can start seeking out advice from the people who know what they're doing. Mind you, you ain't gonna find their advice in a newsletter or ebook. If you want to learn how to trade like a pro, you simply have to get a job at a reputable trading firm. Sorry to lay it out like that, but this is the truth, plain and simple.

Tue, 03/11/2014 - 10:21 | 4534133 LawsofPhysics
LawsofPhysics's picture

Yes, one can never "lose" when they have a corrupt politician on their payroll like all the "pros".  Thanks for pointing that out.

Tue, 03/11/2014 - 11:07 | 4534207 Occident Mortal
Occident Mortal's picture

The only reason large firms make more money than lone amateurs is the law of diversification.

 

The only thing that matters is the amount that your risk on a single trade v's the amount of your total account.

e.g. when risking 10% of your account on 10 trades at a 50% win:lose rate you get the following result

 

110% x 90% x 110% x 90% x 110% x 90% x 110% x 90% x 110% x 90% = 95.099%

Oh look you didn't break even, you lost 4%

 

But if your account is 10 times larger and you make 10 times as many trades (10 traders pooling their resources together)

 

101% x 99% x 101% x 99% x 101% x 99% x 101% x 99% x 101% x 99% x 101% x 99% x 101% x 99% x 101% x 99% x 101% x 99% x 101% x 99% x 101% x 99% x 101% x 99% x 101% x 99% x 101% x 99% x 101% x 99% x 101% x 99% x 101% x 99% x 101% x 99% x 101% x 99% x 101% x 99% x 101% x 99% x 101% x 99% x 101% x 99% x 101% x 99% x 101% x 99% x 101% x 99% x 101% x 99% x 101% x 99% x 101% x 99% x 101% x 99% x 101% x 99% x 101% x 99% x 101% x 99% x 101% x 99% x 101% x 99% x 101% x 99% x 101% x 99% x 101% x 99% x 101% x 99% x 101% x 99% x 101% x 99% x 101% x 99% x 101% x 99% x 101% x 99% x 101% x 99% x 101% x 99% x 101% x 99% x 101% x 99% x 101% x 99% x 101% x 99% = 99.501%

 

Oh look, by scaling up your operation 10 fold, and playing by exactly the same win:lose ratio and using the exact same amount of money for each trade size... you only lost 0.5%

 

 

This is why Banks win and amateurs lose, it's mathematics. Not skill. The risk spectrum is asymetrical and the the only things that matter is...  Size of Trade / Size of Account

Everything else is irrelevent.

 

Most amateurs fail to diversify and risk far too much on each trade, if you risk 25% on each trade then it doesn't take long to go broke because 125% x 75% = 93.75%, the cost of risking 25% on even odds is a staggering 6.25%.  Risk 50% of your account and the cost of risk is 25%.

 

Risk is asymetrical and people who take bigger risks just lose faster. Prop desks earn money simply by suriviving longer than all the mugs.

Tue, 03/11/2014 - 11:36 | 4534399 LawsofPhysics
LawsofPhysics's picture

Just one question;  are these the same large firms/banks that recieved a taxpayer-funded BAILOUT?  And tell us asshat, just how "successful" would they have been without that bailout?

 

Tue, 03/11/2014 - 12:26 | 4534589 Occident Mortal
Occident Mortal's picture

You're way off. Banks didn't need bailouts because of trading losses they needed bailouts because the AAA collateral on the bad loans they made turned out to be toxic junk worth 10c on the $.

 

Are you suggesting Fannie and Freddie were actually running securities prop desks? They weren't. They blew up becuase Joe Six pack didn't pay his exploding Jumbo NINJA ARM, instead he mailed the keys and walked away.

It wasn't the market crash that caused the crisis, the crash came as a result of the massive writedowns on MBS paper. Everyone was holding MBS paper and so everyone was untrustworthy.

 

That's why there was so much talk of separating retail banking and investment banking, in order to erect some kind of firewall between MBS and retail deposits on one hand, and corporate bonds and equity securities on the other.

A crisis in either one of these spaces can be supported by the other space, but a crisis in both simultaneously and the Fed steps in to tear up the rule book and press the quasi-reset button. They reset the bad guys only.

 

Plenty of prop trading desks did not get bailed out, because they did not need bailing out, because they were not up their ears in toxic MBS. You are confusing apples with fish.

Tue, 03/11/2014 - 10:36 | 4534171 Yoki
Yoki's picture

I wish I was an amateur trader, I am simply a figment of your imagination!

Tue, 03/11/2014 - 10:51 | 4534217 DIgnified
DIgnified's picture

 

 

"Reputable" trading firm.  Yes, and you can ride your unicorn down the heroin highway to get to this "reputable" utopian financial establishment. 

 

Your opining comments are consistently retarded.  Stick to promoting your terrible website. 

 

 

Tue, 03/11/2014 - 10:07 | 4534093 LawsofPhysics
LawsofPhysics's picture

Same criminals, different facade.

roll the motherfucking guillotines, nothing changes otherwise.

Tue, 03/11/2014 - 10:07 | 4534095 NoDebt
NoDebt's picture

The number of years it takes to double your money at a given interest rate.  

Int. rate / 72 = Insider trading

Tue, 03/11/2014 - 10:09 | 4534097 Grinder74
Grinder74's picture

Oh, I see, so the big-time hedge fund with billions and who actually pleaded guilty gets to stay in business and continue to make millions, while the little fish who was merely accused without any proof has to go out of business and declare bankruptcy.

Fuck the SEC.

Tue, 03/11/2014 - 10:14 | 4534113 LawsofPhysics
LawsofPhysics's picture

Yes, the game of rewarding irresponsible behavior and punishing good behavior continues.  That, and socializing all their losses.

It will continue until the supply lines break in earnest.

same as it ever was.

Tue, 03/11/2014 - 10:30 | 4534158 Divided States ...
Divided States of America's picture

If it was me or some Indian dude....you think we would get a slap on the wrist like what Stevie got? I would be in a slammer being gangbanged by a few black dudes.

I am sure Loeb, Tepper, Icahn and all the HFs headed by Jews are doing the exact same thing, Cohen needed to be a temporary scapegoat to show that Jews dont get special treatment. What a load of BS.

Tue, 03/11/2014 - 10:11 | 4534103 buzzsaw99
buzzsaw99's picture

Front running, looting customer accounts, muppet raping, insider trading, etc., are only crimes for unconnected people.

Tue, 03/11/2014 - 10:23 | 4534140 The Merovingian
The Merovingian's picture

Cohen is lyng a SAC of shit.  Everyday he walks around free is a thumb in the eye of every hard working person in the world.  There is no justice anymore.

Tue, 03/11/2014 - 10:53 | 4534175 Mercury
Mercury's picture

... And it is Point72.

Sounds like a vegan watering hole for ladies-who-lunch.

But hopefully that's the most he'll be able to get away with charging his smallest, dumbest clients.

Tue, 03/11/2014 - 10:52 | 4534216 Bangin7GramRocks
Bangin7GramRocks's picture

And shame on all of you for fawning over these fucking criminals for the last 15 years. They aren't brilliant. Can't see the future or have a "system" that beats the market. They engage in criminal acts. Plain and simple. I'm talking to you Joe Kernan. You suit sniffing cunt!

Tue, 03/11/2014 - 10:54 | 4534230 spanish inquisition
spanish inquisition's picture

The name hearkens back to the 1000 Points of Light, absent the light. Steve is showing us he was a early pioneer in the Point (of Darkness=abscene of light) 72 club. It shows he is well connected and paying off the right people to conduct business as usual. This creates confidence in the business model. It would not surprise me based on the space, that he has moved up the chain and can now handle industrial espionage information courtesy of the NSA. No need to plant bugs anymore!

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