SAC Says Three London Portfolio Managers Left Hedge FundJesse Westbrook and Chris Larson
SAC Capital Advisors LP, the $14 billion hedge-fund firm founded by Steven A. Cohen, said three portfolio managers in London left last month.
Woei Chan, Alidod Shirinbekov and Paul Crouch departed on Sept. 26, according to filings at the U.K.’s Companies House. The three quant traders, who bought and sold stocks based on signals from computer models, were among 18 partners at SAC Global Investors LLP, the hedge-fund firm’s London unit, at the end of 2012, filings show.
The traders couldn’t be located through U.K. directory assistance and they didn’t reply to e-mails sent through LinkedIn. E-mails to the traders’ SAC accounts were returned automatically. A spokesman for Stamford, Connecticut-based SAC declined to comment on the departures.
The company is reviewing how many traders it needs as it prepares to shrink after a U.S. grand jury indicted the 21-year-old firm in July over allegations of insider trading, according to a person with knowledge of the matter. The firm expects assets to shrink by the start of 2014 to $9 billion, almost all of which will be Cohen and his employees’ personal wealth. That will force the firm to reduce staff to ensure its most profitable traders continue overseeing as much money as possible, said the person, who asked not to be identified because the information is private.
BlueCrest Capital Management LLP, a $35 billion hedge-fund firm that has been expanding into equities, has hired Shirinbekov, another person with knowledge of the matter said. Ed Orlebar, a spokesman for London-based BlueCrest, declined to comment on Shirinbekov.
SAC started 2013 with 20 quant investing teams, while the hedge-fund firm has about 125 teams that buy and sell stocks based on equity analysis. Earlier this year, the firm had about 400 employees focused on investing in total, according to an April 19 filing with the Securities and Exchange Commission.
The U.S. said in its July 25 indictment that SAC engaged in an unprecedented insider-trading scheme that lasted more than a decade. Regulators also accused Cohen of failing to supervise two senior employees.
At the time of the indictment, SAC said it has never encouraged, promoted or tolerated insider trading and takes its compliance obligations seriously.