Bloomberg – SAC Capital Advisors LP is seeking to calm investor concern about founder Steven A. Cohen’s trading in two drug stocks and possible regulatory sanctions after prosecutors for the first time tied Cohen to a specific transaction at the center of an insider-trading investigation.
Executives at the $14 billion firm have spoken to some of their largest clients after a former portfolio manager was arrested Nov. 20, the sixth time a current or former employee was linked to insider trading while working at the firm. The Stamford, Connecticut-based firm is telling investors that compliance procedures are robust and the hedge fund is cooperating with the government, said two clients, who asked not to be named because the fund is private.
