The hedge fund of Stephen A Cohen, SAC Capital Advisors has now just lost seven members of its staff for its Hong Kong office. It also has relocated five others from the same office to its New York and London branches. This was reported in regulatory filings by the firm as confirmed by anonymous sources.
This is one of the most challenging times for the firm as these departures come at a time when investors have submitted nearly 1.7 billion on redemption notices of its current US$15 billion fund during the current investigation on insider trading. Its chief has not been formally charged of a crime but the latest arrest of portfolio manager Michael Steinburg seems to look like the noose is tightening on the embattled hedge fund manager.
This is also one of the signs that the hedge fund industry in Asia is on the decline at the moment, as many investment returns have not been made. The hedge fund still wants to build its business in the region, focusing on the Japan market. It is now setting up an office in Japan, according to the anonymous sources.
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