SAC Capital, a US-based US$15 billion hedge funds group, will turn into family office and will manage the capital of founder Steve Cohen, his relatives and certain employees.
The move by the group comes after the group decided to pay US$1.8 billion to federal prosecutors to settle the charges of being constantly engaged in insider trading over past few years.
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The group now has up to five years to return its remaining US$4 billion or so in outside capital from its more than US$13 billion overall, reported HITC Business.
SAC president Tom Conheeney wrote in an e-mail to its staff that they will continue to operate much as they do now, but as a family office, and the settlement would not change SAC’s ability to trade internal capital.
"We anticipate that our registration will be revoked by the SEC, but it will not affect our ability to operate as a family office," Conheeney wrote.
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