Steven Cohen is considering the idea of closing down his beleaguered hedge fund, SAC Capital Advisors and opening a “family office” to manage its personal funds.

Cohen has $9 billion investments in his hedge fund, which means he will still manage one of the largest portfolios even without outside investors, according to report from Charlie Gasparino & Julie VerHage of Fox Business.

Steve Cohen SAC Capital

Cohen will not manage outside investments

The report said that Cohen’s plan would be crucial particularly for its 1,000 employees. Ending his business operations means it will considerably reduce the number of staff that would work for his family office. SAC Capital manages funds of a number pension funds, private equity firms, and outside investors. Cohen will no longer manage any outside investments once he converts his hedge fund into a family office.

SAC Capital insiders recently indicated to their outside investors of the possibility that the hedge might convert into a family office structure over the next several weeks. The report said that it is unclear if the executives of the hedge fund are considering this as an option as authorities intensified their investigation on its trading activities.

Cohen recently received a subpoena to testify before a grand jury after SAC Capital failed to reach a settlement agreement to end the probe. Three other top executives were ordered to appear in court to answer questions related the hedge funds’ trading activities on the shares of Wyeth Limited (NSE:WYETH) (BOM:500095) and Elan Corporation, plc (NYSE:ELN). Last year, the Securities and Exchange Commission (SEC) filed an insider-trading lawsuit against SAC Capital’s former portfolio manager, Mathew Martoma. He pleaded not guilty on the charges filed against him, and refused to provide information that would implicate Cohen in the case.

SAC Capital agreed to pay a penalty of $616 million to settle the insider-trading complaint of the SEC subject to the approval of the court. Manhattan Federal Judge, Victor Marrero raised concerns regarding the controversial language in the settlement agreement, which allows the hedge fund to “neither admit nor deny” any mistake in the insider-trading allegations.

Fox Business reported that SAC Capital failed to reach a settlement agreement during its recent meeting with prosecutors and authorities stepped up their investigation to build a strong case against the hedge fund and its executives. The hedge fund warned investors that its cooperation with the government regarding the case is no longer conditional.

Cohen might claim his constitutional right against self-incrimination during his appearance with the grand jury regarding the case, according to a lawyer familiar with the situation. Prosecutors are expected to file an indictment after the grand jury testimony.