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.
Via Bloomberg, [5]
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.”