BOSTON Feb 25 SAC Capital Advisors, the once
powerful hedge fund that plead guilty to insider trading charges
last year, is streamlining its business units and will hire a
chief surveillance officer as it transforms itself into a family
The firm, now managing only founder Steven A. Cohen's $9
billion personal fortune, will combine its three U.S. stock
divisions and macro business into two new entities slated to
start operating in April, Cohen and SAC President Tom Conheeney
wrote in a letter to employees, which was seen by Reuters.
SAC's quant business, where traders rely on mathematical
algorithms to trade, will operate in a separate, newly formed
entity and the firm is creating a new position of chief
surveillance officer, the letter said.
"We are also strengthening our compliance structure. We
will be augmenting our compliance capabilities with the new
position of Chief Surveillance Officer ("CSO"), reporting to
Tom," the letter said.
Late last year the Stamford, Connecticut-based firm plead
guilty to the government's charges, agreed to a $1.8 billion
fine and promised to stop managing money for outsiders. In the
letter, Cohen said that former clients got their money back in
"We are committed to doing everything in our power to ensure
we never go through again what we have experienced over the last
few years," the pair said.