SAC Capital Ups Stake In Gogo To 5.4 Percent

By Mani
Updated on

The hedge fund SAC Capital revealed an increase in its passive stake in the provider of in-flight Wi-Fi, Gogo Inc (NASDAQ:GOGO), in a recent 13G filing.

Steve Cohen’s SAC Capital enhanced its stake in Gogo Inc (NASDAQ:GOGO) recently to become the third-largest shareholder of Gogo Inc.

SAC Capital’s revelation comes as part of an SEC mandate to make a regulatory filing if an entity owns over 5% of a company.

A highly successful trader

Steven Cohen is considered one of the $2 trillion hedge fund industry’s best known and most successful traders. His 20-year old firm has generated an average annual return of 25%.

However, the Securities and Exchange Commission filed an insider trading lawsuit against SAC’s former portfolio manager Mathew Martoma last year with regard to transactions in Elan Corporation, plc (ADR) (NYSE:ELN).

The hedge fund also saw mass redemption requests from clients as part of a standard quarterly window for capital return notices.

Late last year, Steven A. Cohen’s hedge fund SAC Capital also agreed to a $1.8 billion fraud settlement with the Securities and Exchange Commission, and the deal is expected to include at least one guilty plea. Cohen himself is not a defendant in this case, but the settlement doesn’t protect him from civil or criminal prosecution related to the counts of insider trading.

Converting to a family office

Last month, it was reported that SAC Capital Advisors would hire a chief surveillance officer to prevent insider trading investigation in the future.

SAC Capital also informed its employees that it would consolidate some of its operating divisions as it converts the hedge fund into a family office. It will announce a new name for the firm in April. The firm already completed returning the money of outside investors excluding investments in so-called “side pockets.”

According to the firm, the number of employees has declined to 850 from 1,000 early last year. SAC Capital already closed its office in London and some of its employees resigned to join other firms. The hedge fund also said it will combine its four long/short, and macro divisions into two over the next few months.

Recently Forbes magazine estimated Cohen’s personal fortune at $11 billion. SAC in its recent regulatory filing said it now owns 4.5 million shares in Gogo Inc. Gogo Inc (NASDAQ:GOGO) is a holding company that operates through its two operating subsidiaries, Gogo LLC and Aircell Business Aviation Services LLC.

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