As Connecticut-based SAC Capital Advisors is preparing to close its London office, employees at the location are looking to transfer to rival hedge funds.
The Wall Street Journal reported that since SAC’s decision last month to shut the London office by the end of the year, SAC traders, analysts and portfolio managers have been in discussions with firms such as Millennium Management, BlueCrest Capital Management and Balyasny Asset Management in attempts to secure jobs.
SAC president Tom Conheeney told employees in a memo last month that the decision to “operate as a simpler firm and reduce capital allocations… [is due to] the outcome the government is demanding is likely to have a greater than first anticipated impact on the firm.”
SAC pleaded guilty last week to insider trading that is awaiting approval from a federal judge. Under the deal, SAC would be barred from managing external capital for five years, thus forcing the firm to transition into a family office.
A grand jury charged SAC in July with wire fraud and four counts of securities fraud for allegedly allowing insider trading to go unchecked from 1999 through at least 2010. The SEC also charged SAC founder Steve Cohen in a civil lawsuit for failing to prevent insider trading at his firm.
SAC had about $14 billion in total assets under management as of July 1.