Scandalous Hedge Fund SAC Warns Clients of SEC Probe

//Scandalous Hedge Fund SAC Warns Clients of SEC Probe

Scandalous Hedge Fund SAC Warns Clients of SEC Probe

Scandalous Hedge Fund SAC issued a warning to clients Wednesday in a conference call.

Hedge funds typically communicate with their investors via monthly statements and quarterly letters addressing their performance. Conference calls are infrequently held, but are sometimes scheduled to discuss extraordinary market events or, as in this case, a controversy surrounding the fund.
SAC manages about $14 billion, but only 40 percent of that comes from outside clients. The rest belongs to Steve Cohen and his colleagues, who have experienced a return of about 30 percent annually over the last two decades one of the best hedge fund track records..

Find out Net Wort and lifestyle of  Steve Cohen

Mathew Martoma, a former portfolio manager at CR Intrinsic, a unit of SAC, was charged with making more than $276 million in a combination of illegal profits and avoided losses by obtaining secret information from a doctor about clinical trials for an Alzheimer’s drug being developed by the companies Elan and Wyeth.
The case is “the most lucrative insider trading scheme ever charged,” said Preet Bharara, the United States attorney in Manhattan, who brought the charges in Federal District Court in Manhattan.
It also draws in Steve Cohen, whose fund has been in the cross hairs of government investigators since the crackdown on insider trading began. Though not charged or mentioned by name, Mr. Cohen is referred to repeatedly in the government’s court filings as either “Portfolio Manager A” or the “owner” of the funds involved. People briefed on the case confirmed that the reference was Steve Cohen.

2012-11-28T12:56:05+00:00

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