Thursday, May 26, 2011

Steven Cohen’s SAC Capital Management to start Quantitative Trading hedge fund

SAC Capital Advisors, the Stamford-based hedge fund founded by Chief Executive Officer Steven A. Cohen, has announced that it will be launching a quantitative trading based hedge fund due to requests from current investors. According to an article from Bloomberg, quantitative trading already makes up 15% of SAC Capital’s $35 billion in assets under management. It is thought that the new quantitative fund will be run by roughly 20 different teams of quantitative traders.

This news comes a week after an announcement that SAC Capital Advisors is considering closing off its flagship fund to new investors, despite attracting $1.5 billion in new investment since last year. Steven Cohen kept the flagship fund closed for 13 years in order to ensure returns remained high, and it could be the same story this time around. Also, SAC has decided to wind down its multi-strategy hedge fund, which it opened in 2005, due to heavy losses incurred during the 2008 financial crisis.

1 comment:

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