Portfolio managers to get higher bonus at SAC Capital – WYETH & ELNCF
Northern, WI 1/10/2013 (tradewatchmedia) – Wall Street giant Steven Cohen is increasing the funds for his portfolio managers by 3%. This fund raiser was described as the policy to retain employees of SAC Capitol Advisors LP (TSE:SAC) amid a insider trading investigation by the U.S. regulators.
This increased bonus will be paid to equity, macro and commodity portfolio managers – said by a private source under vows of strict anonymity of the source’s identification as this is confidential information of the firm.
Earlier the annual bonus was paid at the rate of 15% to 25% of the investment profits earned by the eligible employees, another source revealed. The U.S. government is looking to scrutinize the hedge investment scheme of Steven Cohen.
A portfolio manager Mathew Martoma who worked for SAC Capitol Advisors LP (TSE:SAC) is under probe of U.S. government since November for a gain of $9.38 million in January that he earned for the hedge fund under a trading scheme of $276 million in 2008.
Martoma traded on teh basis of undisclosed price sensitive information relating to results of clinical trials of a drug for the treatment of Alzheimer’s and also told Wyeth Limited(NSE:WYETH) and Elan Corp. (PINK: ELNCF) to divest their stakes in the drug making business before the negative news spread in the market.
Martoma has been charged with two security frauds which could cost him up to 20 years in prison. He got arrested by FBI and later released for $5 million bail after an initial court hearing . According to his attorney, Martoma succeeded just because of his hard work and he will be out of the trouble soon.
Steven Cohen also got sued on 21st December by a group of Elan (PINK: ELNCF) investors for illegal trading in drug manufactures stock. On the other side, Manhattan U.S. Attorney Preet Bharara did not comment on Cohen but he did say that profits in the scam were illegal but the case has no historical resemblance with any other.
Investors of SAC Capital Advisors LP (TSE:SAC) have until the mid of the Feburary to decide whether they want to go with their 40% investment or not but they can only take out 25% of their total investment on a 45 days’ notice each quarter . Pulling out the total investment may take up to a year.
Shares of Wyeth Limited(NSE:WYETH) were down by 0.02% to close at INR880.00.
Shares of ELAN CORP (PINK: ELNCF) showed no move and closed at $9.90.