Hedge fund manager Steve Cohen will rename SAC Capital Advisors as the firm is transitioning into a family office as part of an insider trading settlement with the U.S. government.
Bloomberg Businessweek reported that the Connecticut-based firm is also planning to add three trading units as part of the restructuring, which is expected to take place in mid-March.
One will be run by Phillipp Villhauer, SAC’s current head of trading, another by Michael Ferrucci, who oversaw the firm’s London office that closed last year, and the third by Ross Garon, who currently heads the firm’s quantitative trading group.
A grand jury charged SAC in July 2013 with wire fraud and four counts of securities fraud for allegedly allowing insider trading to go unchecked from 1999 through at least 2010. The firm, which pleaded guilty in November to insider trading, agreed to pay a record $1.8 billion fine and to be barred from managing external capital for five years.
SAC, which had about $14 billion in total assets under management as of last year, is expected to manage about $9 billion for Cohen and his employee once the firm completes its transition to a family office.