Steven A. Cohen Bloomberg SAC Capital Advisors plans to shut down its London office as the $14 billion hedge fund firm founded by Steven A. Cohen scales back in the face of insider-trading allegations by U.S. prosecutors.
SAC will close down the U.K. office by the end of the year, President Tom Conheeney wrote in a memo sent to employees Tuesday. SAC employs more than 50 people in London, according to a person with direct knowledge of the matter. The firm this week cut six investment professionals in the U.S., Mr. Conheeney wrote.
“As our negotiations with the government have unfolded, it has become clear to us that the outcome the government is demanding is likely to have a greater-than-first-anticipated impact on the firm,” he wrote. “We have concluded that we must operate as a simpler firm and reduce our capital allocations.”
Money managers have been leaving SAC's U.K. office after a U.S. grand jury indicted the firm in July
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