Ordered to shut its doors to outside investors, SAC Capital Advisors will “condense into fewer legal entities and will not accept any external money.” The yet-to-be named new business of SAC Capital will manage employee money including co-founder and chairman Steve Cohen’s estimated $9 billion.
Whether Cohen should legally be able to operate a financial management company, even on a “small” scale, isn’t in question. Under the careful eye of the government (FBI, SEC), the new SAC promises to “increase management oversight and strengthen its compliance program.” With a rebranding campaign in the works (to launch mid-March), Mr. Cohen is in search of a strong name for the smaller, leaner SAC. (Scandalously creative with money, he hasn’t shown much imagination in naming enterprises — SAC stands for Steven A. Cohen.) How about Outsider Trading Co.? SAC Lite? ranSACk?