Cohen To Shed Off Staff Number As Investigation Pushes More Investors Away

By IVCPOST Staff Reporter

Jun 04, 2013 12:32 AM EDT

Steven A. Cohen may face a less glamorous future as SAC Capital Advisors' investors pull bulk of money while an insider trading investigation takes place. He is also on the verge of cutting down employment number and closing some of his offices. Cohen will also scale back some of its trading. According to industry experts, this is something that would cost Wall Street companies annual millions of dollars in commission trading.

Spokesman from SAC Capital refused to comment on the issue. However, he confirmed that the firm's current assets remain to be at US$15 billion.

According to Daryl Jones, Research Director at Hedheye Risk Management, Cohen is confronted to face a lot of tough choices once outside investors pull out large sums of their money. This would involve cutting down the number of staff he has.

On Monday, more investors are expected to redeem their cash that would be between US$3 billion and US$4 billion from SAC. This was on top of the US$1.7 billion that the investors requested redemption during the first quarter of the year.

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