A. Cohen's SAC picks new name: Point72
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[March 12, 2014]
By Svea Herbst-Bayliss
BOSTON (Reuters) — Steven A. Cohen,
whose hedge fund SAC Capital Advisors pleaded guilty to insider
trading, is changing the name of his firm to Point72 Asset
Management as it shifts focus to managing his own assets from
serving as a hedge fund for wealthy investors following an agreement
with the U.S. government.
"SAC will give way to a new flagship name for the parent holding
company, Point72 Asset Management, where our management and back
office employees will primarily reside," Tom Conheeney, SAC's
president, wrote to employees in a letter seen by Reuters on
Speculation had been mounting on Wall Street over what Cohen would
call his firm and whether he might move out of the office building
at 72 Cummings Point Road in Stamford, Connecticut, now that the
firm is taking on a smaller footprint.
The name change reflects the firm's expectation that it will remain
in Stamford at its headquarters "for many years to come,"
Conheeney's letter said. It is also meant to signal a new beginning
for the firm. "We have been through a great deal during the past few
years. Our new names, combined with the other changes we have
announced, are intended to help us to move forward," he wrote.
The two new long/short trading divisions will do business as Point72
Asset Management (Point72) and EverPoint Asset Management (EverPoint).
The MultiQuant business will operate as Cubist Systematic Strategies
The new names will become effective on April 7, completing the
firm's transformation from a hedge fund, which oversaw $14 billion
for wealthy clients at the start of last year, to a family office
which will primarily manage Steven A. Cohen's personal fortune,
estimated most recently by Forbes at $11 billion.
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SAC was forced to stop managing outside money as part of its plea
with the U.S. government when it agreed in November to pay $1.2
billion to settle securities fraud charges. Prosecutors charged the
firm with insider trading after investigating the firm for years.
Steven A. Cohen, who founded SAC in 1992 with $25 million, was never
charged with any wrongdoing.
Cohen said recently that the firm has about 850 employees; it once
had roughly 1,000.
(Reporting by Svea Herbst-Bayliss;
editing by Phil Berlowitz)
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