One year ago
>> It was a less complicated time for SAC
Capital Advisors. Founder Steve Cohen was attracting attention
for a failed bid to buy the Los Angeles Dodgers, not
for being the target of government insider trading probes.
That changed last fall when the Securities and
Exchange Commission and Department of Justice charged ex-SAC
portfolio manager Mathew Martoma with insider trading. SAC
settled the Martoma-related civil case last week with a $616
million payout, which the SEC said was the largest settlement
ever for insider trading (the firm didn't admit or deny the
allegations). But the SEC indicated that, despite the
settlement, future charges could still be leveled against
others connected to the firm, including Cohen, and criminal
charges against Martoma are still in process
"I don't want to leave you with the thought that
this means everything is cleared up," SAC President Tom
Conheeney reportedly told investors afterward.
SAC's assets rose to $15 billion this January, up
$1 billion from a year earlier. The Wall Street Journal has
reported that $1.7 billion of redemptions are imminent (see
more on assets here).
External spokesman Jonathan Gasthalter of Sard
Verbinnen & Co. issued the following prepared statement:
"This settlement is a substantial step toward resolving all
outstanding regulatory matters and allows the firm to move
forward with confidence." He added, "Steve Cohen has not been
charged with any wrongdoing and has done nothing wrong."
See also: SAC's Cohen gives $17M for veterans' mental health
research - Former SAC, Jefferies HR head joins AQR
>> The largest Americas hedge funds--those
managing $1 billion or more--increased their assets by 2.96%
over the previous year to $1.335 trillion, according to the Absolute Return Billion Dollar Club.
The past year was even better, with Club assets up
9.3% in twelve months to $1.46 trillion. The complete list of
269 firms is available here.
See more Research & Rankings
Five years ago
>> In a cover story, Absolute
Return posed the question of whether Tom Steyer's Farallon
Capital Management, which reached $36 billion at the start of
2008, was growing too fast.
The question was well timed. By midyear 2008, even
before the main losses of the financial crises, the firm was down 12.5% through August in its
flagship multistrategy fund, and ended the year down 36%. Redemption requests poured in and Farallon
responded by creating a liquidating trust to manage the
outgoing assets. The firm's assets had declined to $20 billion by January 2009.
The trust was fully distributed by the end of 2009,
with an internal rate of return of 14% on average, a person
close to the firm said.
Then in October 2012, Steyer officially confirmed
his long-tipped plans to retire, turning over control to
co-managing partner Andrew Spokes. The firm's flagship fund
gained 11.42% in 2012, compared with an 8.66% rise for the Absolute Return Multistrategy Index. Despite the
gain, assets fell from $19.2 billion at the start of the year
to $18.6 billion at the end.
Steve Bruce, an external spokesman for Farallon at
PR shop ASC Advisors, declined to comment.
See also: Former Farallon man sets up Route One - Farallon loses top value execs - Farallon loses New Mexico pension