SAC Capital
| L.P., Private | |
| Industry | Hedge funds |
| Fate | Converted into Point72 Asset Management in 2014 |
| Founded | 1992 |
| Founder | Steven A. Cohen |
| Defunct | 2016 |
| Headquarters |
Stamford, Connecticut United States |
| Owner | Steven A. Cohen |
SAC Capital Advisors was a group of hedge funds founded by Steven A. Cohen in 1992. The firm employed approximately 800 people in 2010 across its offices located in Stamford, Connecticut and New York City, and various international satellite offices, but has reportedly lost many of its traders in the wake of various investigations by the SEC. In 2010, the SEC opened an insider trading investigation of SAC and in 2013 several former employees were indicted by the U.S. Department of Justice. In November 2013, the firm itself pleaded guilty to insider trading charges and paid $1.2 billion in penalties, although no formal charges have been filed against Mr. Cohen himself. The firm has shrunk after returning the vast majority of its outside (i.e. not controlled by Steven Cohen personally) investor capital. Point72 Asset Management was established as a separate family office in 2014. SAC ceased to exist as a separate entity in 2016.
The company was founded in 1992 with $25 million. SAC became one of the most successful hedge funds, with annual returns averaging 25 percent after fees. The company's strategy was the "mosaic theory of investing" which develops investment positions based on stock information from many sources. SAC focused on trading liquid, large-cap stocks and later began using fundamental and quantitative strategies. The company had $14 billion in assets across four independent portfolios. According to Bloomberg BusinessWeek magazine, SAC Capital Advisors daily trading activity accounts for as much as 3% of the 's daily trading and up to 1% of the NASDAQ's daily trades. SAC Capital maintained offices in Stamford, Connecticut, New York City, Hong Kong, Tokyo, Singapore, London, Boston, San Francisco, and Chicago.
On December 9, 2013, SAC agreed to sell its reinsurance business, SAC Re, to a group of investors led by insurance-industry veteran Brian Duperreault.
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