SAC Capital
SAC Capital Advisors was one of the leading hedge funds on Wall Street with $50 billion in assets under management at its peak. It employed the strategy "mosaic theory of investing" which develops investment positions based on stock information from many sources. SAC focused on trading liquid, large-cap stocks and later began using fundamental and quantitative strategies. It converted into Point72 Asset Management in 2014.
Associated People
Jamie McDonald
2005 - 2014
Niall Boland
2001 - 2008
Liran Blum
2007 - 2008
Austin Root
2005 - 2007
Nick Colas
1999 - 2001
Stephen Weiss
1996 - 1997
- SAC started trading with $25 million in 1992, grew AUM to $16 billion, and became the world's highest-returning hedge fund.
- It averaged annual returns of 30% net of fees under a 3% management fee and 50% performance fee from 1992 to 2013.
- It reportedly lost many of its traders in the wake of various investigations by the Securities and Exchange Commission.
- In 2010, the SEC opened an insider trading investigation of SAC and in 2013 several former employees were indicted by the U.S. Department of Justice.
- In November 2013, the firm itself pleaded guilty to insider trading charges and paid $1.2 billion in penalties (in addition to $616 million already paid to the SEC).
- The firm shrunk after returning the vast majority of its outside investor capital.
- Point72 Asset Management was established as a separate family office in 2014.
- SAC ceased to exist as a separate entity in 2016.