Steven Cohen's SAC Capital Seeks to Calm Investors' Nerves
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Given the SEC's recent action against SAC Capital's unit CR Intrinsic Investors LLC, former portfolio manager Mathew Martoma, and implications that founder Steven Cohen was deeply involved, investors in the hedge fund are downright nervous.
To calm nerves and answers questions, the $14 billion hedge fund will be holding a conference call with clients on Wednesday, according to reports from Bloomberg.
On Nov. 20, Martoma was arrested on allegations he obtained confidential information about a clinical trial for Elan's (NYSE: ELN) and Wyeth Alzheimer's drug, that made or saved the hedge fund $276 million.
After a tip about negative results from the trial from insider Dr. Sidney Gilman, the firm went from being long over 10.5 million shares of Elan and over 7.1 million shares of Wyeth to being short 4.5 million shares of Elan and 3.3 million shares of Wyeth prior to the July 29th announcement from the company.
While Steven Cohen wasn't named, he was referenced as "Portfolio Manager A" in the complaint, which the SEC said "collaborated closely with Martoma in making the trading decisions."
To calm nerves and answers questions, the $14 billion hedge fund will be holding a conference call with clients on Wednesday, according to reports from Bloomberg.
On Nov. 20, Martoma was arrested on allegations he obtained confidential information about a clinical trial for Elan's (NYSE: ELN) and Wyeth Alzheimer's drug, that made or saved the hedge fund $276 million.
After a tip about negative results from the trial from insider Dr. Sidney Gilman, the firm went from being long over 10.5 million shares of Elan and over 7.1 million shares of Wyeth to being short 4.5 million shares of Elan and 3.3 million shares of Wyeth prior to the July 29th announcement from the company.
While Steven Cohen wasn't named, he was referenced as "Portfolio Manager A" in the complaint, which the SEC said "collaborated closely with Martoma in making the trading decisions."
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