Steve Cohen’s Point72 says it has perfect U.S. compliance

Thu Mar 17, 2016 7:52pm EDT
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By Lawrence Delevingne and Jennifer Ablan

NEW YORK (Reuters) - Billionaire Steve Cohen's investment firm, a family office that took over managing his fortune in 2014 after his hedge fund pleaded guilty to securities fraud, has a perfect regulatory compliance record, its president said on Thursday.

Point72 Asset Management, which manages about $11 billion and took over after regulators barred Cohen's SAC Capital Advisors from dealing with the public, has had “zero point zero” compliance and regulatory problems, Point72 President Doug Haynes said in an interview.

The firm succeeded SAC Capital Advisors, Cohen's hedge fund firm which pleaded guilty to securities fraud in an insider-trading settlement with U.S. regulators that also included a $1.8 billion fine. 

In an interview with Reuters at Point72's Stamford, Connecticut headquarters, Haynes said the firm's compliance culture goes beyond strict legal parameters.

“We have professional standards, and you get fired if you violate them," he said.

Haynes, a veteran of consulting firm McKinsey & Co., said compliance staff has increased 25 percent since Chief Compliance and Surveillance Officer Vincent Tortorella was hired in April 2014.

He said Tortorella, a former federal prosecutor, has changed the way Point72 does surveillance of its investment professionals. The compliance staff includes former personnel from the Central Intelligence Agency, Federal Bureau of Investigation and Securities and Exchange Commission.

It employs technology from the likes of Palantir, a data analysis-focused company used by government agencies and others.   Continued...

Hedge fund manager Steven A. Cohen, founder and chairman of SAC Capital Advisors, listens to a question during a one-on-one interview session at the SkyBridge Alternatives (SALT) Conference in Las Vegas, Nevada May 11, 2011. REUTERS/Steve Marcus