SAC Capital Has A Reverse Midas Touch With Spinoffs

[Parsad]

Article by CNBC on how so many ex-SAC traders usually fail when starting funds seeded by SAC...I'm guessing it's the culture at SAC that creates the problem when these guys go out on their own...wrong intellectual framework, develops the wrong culture and they end up doing stupid and risky things.  Cheers!

 

http://www.cnbc.com/id/34415536

[Rabbitisrich]

I'm not familiar with most of the hedge funds named in the article, but of the direct SAC spin-offs, only Prentice Capital seemed to deeply underperform the market. 

 

 

 

 

[dcollon]

Somewhat off topic, this article was in the NYT.

 

http://www.nytimes.com/2009/12/16/business/16sac.html?ref=business

 

[Redskin212]

It just keeps getting better for Mr. Cohen!

 

http://www.nypost.com/p/news/business/hedge_fund_king_cohen_trading_says_4fU0NyUwQ9le17UhgPFN5K

 

[ubuy2wron]

I think if there is prosecutorial will ,Stevie will eventually serve time. I certainly hope they do not do a Milliken and allow him to keep a large part of his ill gotten gains  and serve a nominal sentence .

[Rabbitisrich]

http://online.wsj.com/article/SB125746971902632491.html

 

 

Mr. Fortuna's complaint lists as co-conspirators two other hedge-fund managers, each of whom allegedly fed him inside information. Neither hedge fund is named but, according to the complaint, one of the hedge-fund managers gave Mr. Fortuna information about a Massachusetts company, while another gave him information about a Texas company.

 

Mr. Lee's complaint alleges he was exchanging information with at least six companies and one investor-relations firm as well as three hedge-fund managers who aren't named in the complaint. Mr. Far's complaint alleges he was exchanging information with four companies and four current or former hedge-fund managers who aren't named. The complaint alleges Messrs. Lee and Far paid some of their sources $2,000 per quarter in exchange for information. Other co-conspirators were paid $1,000 per quarter for information, the complaint alleges.

 

 

They only paid $2,000 a quarter for inside information?

[twacowfca]

http://online.wsj.com/article/SB125746971902632491.html

 

 

Mr. Fortuna's complaint lists as co-conspirators two other hedge-fund managers, each of whom allegedly fed him inside information. Neither hedge fund is named but, according to the complaint, one of the hedge-fund managers gave Mr. Fortuna information about a Massachusetts company, while another gave him information about a Texas company.

 

Mr. Lee's complaint alleges he was exchanging information with at least six companies and one investor-relations firm as well as three hedge-fund managers who aren't named in the complaint. Mr. Far's complaint alleges he was exchanging information with four companies and four current or former hedge-fund managers who aren't named. The complaint alleges Messrs. Lee and Far paid some of their sources $2,000 per quarter in exchange for information. Other co-conspirators were paid $1,000 per quarter for information, the complaint alleges.

 

 

They only paid $2,000 a quarter for inside information?

 

 

Their sources must not have had the services of consultants to form a compensation committee.:)