SAC ‘Eat-What-You-Kill’ Culture Bred Hedge Funds Under Scrutiny
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SAC Capital Advisors LP, the firm that spawned several of the hedge funds tied to investigations by U.S. regulators, encourages competition.
Its founder, 54-year-old Steven A. Cohen, hires traders and gives them some SAC money to manage on their own, according to former employees. If they do well, they get more money to manage and a green light to hire analysts to help research stocks. If they do poorly, they’re out. The result is a firm composed of fiercely competitive pods, with many of the best managers eventually leaving to start their own firms, the former employees say.