June 29 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)