Andrew Schiffrin, who traded industrial stocks at SAC Capital Advisors LP, quit as billionaire founder Steven A. Cohen is turning the firm into a company managing his personal wealth, said a person briefed on the departure.
Schiffrin, who worked at SAC’s CR Intrinsic unit, resigned from the Stamford, Connecticut-based firm this morning, said the person, asking not to be identified because the information is private. Schiffrin declined to comment, as did Jonathan Gasthalter, a spokesman for SAC at Sard Verbinnen & Co.
The departure comes after Cohen last month paid some of the bonuses for 2013, which he raised last year to stem defections as the U.S. insider-trading probe of his firm intensified. SAC agreed in November to close its hedge funds to outside investors and pay $1.8 billion to settle government charges that it used illegal tips to profit. The company, which oversaw $15 billion at the beginning of last year, will start 2014 with about $9 billion in assets from Cohen and employees, executives at the firm have said.
While Cohen, 57, hasn’t been charged with a crime, the government has said that its investigation of insider trading at the firm continues, and that the plea deal doesn’t provide immunity to any individual. The U.S. Securities and Exchange Commission filed an administrative action against Cohen in July.
The trial of Mathew Martoma, a former money manager at SAC’s CR Intrinsic unit who the government accused of taking part in the “most lucrative” ever insider-trading scheme, is scheduled to start this week. SAC money manager Michael Steinberg, who is one of the longest-serving employees entangled in the probe, was convicted last month of securities fraud.
SAC employed about 950 people globally, with some 400 of them focused on investing, according to a government filing last month. Among the departures from SAC so far are Nick Tiller, an energy money manager, who retired in October to focus on a charity he founded, and Chief Operating Officer Sol Kumin, who will be leaving the company at the end of January.
SAC said in October it would close its London office. The firm’s money managers there have since been offered positions at firms including Balyasny Asset Management LP, which hired three money managers who start this month, Moore Capital Management LP and BlueCrest Capital Management LLP.