Hedge fund firm SAC Capital Advisors is on a mission to bolster its compliance practices.
The New York Times reported that SAC founder Steve Cohen told investors in a letter Thursday that the firm would claw back the salary of employees who violate regulatory or criminal sanctions.
In the letter, Cohen assured investors that SAC has “zero tolerance for wrongdoing and if you are caught breaking the rules, it will cost you.”
The letter comes at a time when SAC is trying to hold on to its investors as it announced last week that it will postpone the deadline to let its investors withdraw their money amidst insider trading allegations. At least nine current or former SAC employees have been tied to insider trading while working at the firm; four have pleaded guilty.
Based in Stamford, Conn., SAC manages about $15 billion in assets.