BOSTON, March 18 Steven A. Cohen's SAC Capital
Advisors cautioned investors on Monday that last week's
settlement with U.S. financial regulators over insider trading
charges, does not end the government's scrutiny of the $15
billion hedge fund.
SAC Capital agreed to pay a record $616 million fine to
settle two lawsuits, the largest ever U.S. insider trading
"I don't want to leave you with the thought that this means
everything is cleared up," SAC President Tom Conheeney said on a
conference call, according to one person familiar with the call.
The government's charges had sufficiently unnerved investors
that they asked to have $1.68 billion returned and Blackstone
Group, a key investor with some $550 million in the fund,
negotiated more favorable liquidity conditions last month.
Cohen, one of the hedge fund industry's most successful
traders, did not speak on the call. The firm reiterated earlier
statements that the government's investigation into improper
trading is continuing.
The Wall Street Journal first reported that the call took
The government said on Friday that the settlement does not
preclude it from bringing additional charges in the future and
the U.S. Department of Justice and the Federal Bureau of
Investigation are still investigating SAC's trading of other
In agreeing to settle, neither SAC Capital nor its
subsidiaries admitted or denied wrongdoing. SAC Capital's
management company and not outside investors will pay the fines,
a person familiar with the hedge fund said on Friday.