Connecticut-based SAC Capital Advisors is considering hiring a prosecutor or securities regulator to monitor the hedge fund firm’s trading activities.
The New York Times reported that SAC announced to employees in a letter Tuesday that it will hire a chief surveillance officer in the spring to oversee the firm’s trading following its insider trading case.
SAC, 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. U.S. Judge Laura Taylor Swain has said she will decide in a few weeks whether to approve or reject SAC’s guilty plea.
The article added that SAC also told investors in the letter that after its conversion to a family office, the hedge fund would consolidate several operating divisions and would announce a new name for the firm sometime in April.
SAC, which had about $14 billion in total assets under management as of last year, is expected to manage about $9 billion for founder Steve Cohen once the firm completes its transition to a family office.