By Svea Herbst-Bayliss
BOSTON, Jan 10 (Reuters) - Hedge fund SAC Capital Advisors
on Thursday said it is closing down its Chicago office and
laying off staff from the four portfolio teams that work there.
"We regularly review our operations and given the limited
opportunity in the region, we didn't believe it made sense to
have a separate office in Chicago," an SAC spokesman said.
No exact figure was available as to the number of layoffs,
but the spokesman said four teams of portfolio managers and
analysts worked in the satellite office and will be let go.
The Stamford, Connecticut-based firm has $14 billion in
assets with offices worldwide, including in New York, Hong Kong,
London and Boston.
From time to time, it has shut a location, such as its San
Francisco office, which was closed several years ago. SAC
management had mulled shutting down the Chicago office for some
The firm, which has recently drawn fresh scrutiny in the
U.S. government's ongoing insider-trading probe, employs roughly
1,000 people around the world including about 125 portfolio
In light of the probe, SAC is planning to raise the size of
portfolio managers' bonuses by 3 percentage points for this year
in order to retain investment talent.
The government told SAC and its founder Steven A. Cohen late
last year that it may bring civil fraud charges in relation to a
case in which a former SAC fund manager has been charged with
having traded in pharmaceutical companies Elan and Wyeth, now
owned by Pfizer, with illegally obtained information about
Cohen and the firm maintain that "they have acted
appropriately and will continue to cooperate with the
government's inquiry," the spokesman reiterated.
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