Steven A. Cohen’s SAC Capital Advisors shut down Parameter Capital Management, one of its in-shop hedge funds, last week.
One of the fund’s managers, Anil Stevens, is leaving SAC to start his own fund, Reuters reported, taking eight of nine people who worked in the unit with him. Stevens, according to the report, had been planning to start his own firm.
Unnamed sources cited in multiple reports said the decision to close Parameter was planned before federal prosecutors last month charged SAC in a five-count indictment alleging a company culture that flouted trading rules.
Parameter is mentioned in regulatory filings as one of nine affiliated entities that manage money for SAC Capital, which Cohen launched 21 years ago with $25 million. It is valued now at $14 billion.
The New York Times cited “a person close to SAC” who said Parameter set the shutdown in motion a year before prosecutors and the F.B.I. announced the hedge fund’s indictment in July. SAC decided to close the unit, the person told the Times, because Stevens was planning to start his own fund and take eight of the unit’s nine employees with him.
Stamford-based SAC employs about 1,000.
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