After SAC Capital closed its London office, the rehiring of former SAC employees and reinvestment of the redeemed SAC funds became a hotly debated topic. Back in June, we did a story in which our sources confirmed that redemptions from SAC Capital were more likely to settle in funds that followed a strategy similar to SAC’s. We explained that funds like Balyasny Asset Management were likely to host SAC money against multi-strategy funds like Hutchin Hill.
Balyasny, Moore Capital conducting interviews
A recent piece by Harriet Agnew and Jenny Strasburg in the Wall Street Journal reiterates what we have said earlier. Now that SAC Capital’s London office is being wound down, the analysts and research staff are looking for a new place to work. Louis Bacon’s Moore Capital, Balyasny Asset Management, Israel Englander’s Millennium Management and BlueCrest Capital are top choices in this regard, according to Harriet Agnew and Jenny Strasburg of WSJ.
There have been reports that Moore Capital has conducted several interviews with prospective hires. There is also some talk of taking in a whole team of former SAC analysts and research staff to work as a unit in Moore Capital. However, nothing has been disclosed officially.
Balyasny Asset Management has poached a couple of SAC employees over this year and is likely to hire more as the hedge fund seeks to expand. Both SAC Capital and Balyasny Asset Management have a history of recruiting managers from each other and the trend will only get stronger, now that BAM is looking to hire talent in several sectors.
SAC Capital pleads guilty
Steve Cohen’s hedge fund has been embroiled in insider trading investigation which has concluded in a settlement of $1.8 billion, the largest amount that has been recorded in such cases. The hedge fund took the deal, in which six out of eight former SAC managers pleaded guilty to the criminal insider trading charges. Now SAC Capital cannot function as an investment adviser but it will probably set up as a family office. The SEC has also filed a complaint against Steve Cohen, which seeks to ban him as an investment adviser after he allegedly failed to supervise his employees.
SAC Capital’s London Office employed 50 people including a dozen partners at one time. Among those who have been implicated in the insider trading case, none have worked in the London office. WSJ reports that one option under consideration by the London staff is that a new fund could be established with help from a former SAC Capital investor. The investment teams which will be laid off can remain intact while working at the new spin-off fund.
SAC Capital gained 1.3% in the last month, pushing up the total returns to +15.95% for the year, according to Reuters.