Ex-SAC officer plans Leucadia-backed hedge fund firm -WSJ

June 29 Sun Jun 29, 2014 12:38pm EDT

June 29 (Reuters) - A former top executive of SAC Capital Advisors is planning to launch a stock trading hedge fund firm with much of the start-up capital to come from Leucadia National Corp., according to the Wall Street Journal.

Solomon "Sol" Kumin, who was SAC's chief operating officer, is in advanced talks over a deal with Leucadia that would make it the Kumin firm's biggest investor, the paper said, citing people familiar with the discussions.

The firm would start with capital ranging between $800 million and $1 billion, making it one of biggest hedge funds to launch in 2014, it said.

Kumin's planned firm will have offices in Boston and New York and will buy and sell stocks through several trading teams, the Wall Street Journal said.

Leucadia, which owns investment bank Jefferies, could invest around half of the starting assets, or an estimated $400 million, although any terms aren't yet finalized, people familiar with the discussions told the paper.

The 39-year-old Kumin resigned as SAC's chief operating officer in January.

Back in November SAC agreed to pay a $1.2 billion fine after it was indicted for criminal insider trading charges. It also paid $616 million as a part of a deal with the U.S. Securities and Exchange Commission. (Reporting by Richard Leong; Editing by Greg Mahlich)

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