A former senior executive of SAC Capital Advisors is reportedly considering launching a new stock-trading hedge-fund firm, mostly funded by Leucadia National.
People familiar with deal discussions told the Wall Street Journal that Solomon "Sol" Kumin, who was SAC’s chief operating officer, has reached in advanced stage of negotiation with Leucadia to launch the company.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
It is believed that the company will start operations with capital ranging from US$800million and US$1billion, making it one of the biggest hedge funds to launch this year.
Kumin told the Wall Street Journal, "I’ve enjoyed the past five months spending time with my family."
"I’m looking forward to getting back into the hedge-fund business in September," he added.
The proposed hedge-fund firm will maintain offices in Boston and New York and will buy and sell stocks through several trading teams, the according to the publication.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataIn the new company, Kumin will act as a chief executive and will have one other founding partner, a risk executive from another hedge fund.
Kumin resigned following a US$1.8billion penalty imposed against SAC in November. The company was also pleaded guilty to insider-trading charges and abandoned managing money for outside investors.
Before joining SAC in 2005, Kumin was in equities sales at Sanford C Bernstein & Co, part of AllianceBernstein, where his clients included SAC.
