Hedge fund manager Steve Cohen is attempting to prevent more employees from leaving his firm by pressing its remaining portfolio managers to sign two-year contracts.
The New York Times reported that Cohen’s Connecticut-based SAC Capital Advisors has also threatened to sue some traders who left before their existing contracts expired and mandate that they delay the start dates of their new jobs as a condition for their early departures.
About a dozen SAC Capital portfolio managers have been steadily leaving the firm to join rivals hedge funds following its guilty plea to insider trading in November. It has also agreed to pay a record $1.8 billion fine and to be barred from managing external capital for five years, which is pending approval from U.S. District Judge Laura Taylor Swain.
SAC will also rename itself Point 72 Asset Management--which will take effect on Monday--while various funds at the firm will be renamed Point72, EverPoint Asset Management and Cubist Systematic Strategies.
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.