From Businessweek: One day in 2008, David Munno decided to vent to his boss.
Munno, a health-care analyst then employed at SAC Capital Advisors, was
mystified as to why the hedge fund was building up large positions in drug
companies Elan and Wyeth. The positions were unhedged, which made the trades
even riskier. And there was no obvious strategic explanation, other than that a
relatively untested 34-year-old portfolio manager named Mathew Martoma had been
pushing heavily for the trades.
Martoma was viewed skeptically by many of his colleagues,
according to a current SAC employee who was not authorized to speak for
attribution. But the one person who trusted him was the only person who mattered:
SAC founder Steven A. Cohen.
Within the gladiatorial atmosphere of SAC’s offices, where
dozens of the brightest and most aggressive traders on Wall Street are in
constant battle for the favor of their billionaire boss, Munno and another
analyst, Benjamin Slate, pressed their arguments: “ELN, (important, please
read) negative reads from company and other buysiders,” said an e-mail they
sent to Cohen, which was quoted in a government complaint. The e-mail,
referring to the ticker symbol for Elan, listed the men’s concerns about why
the drug stock was a dangerous long-term bet.
Cohen wasn’t interested…..
More? Check out http://www.businessweek.com/articles/2013-01-17/on-the-trail-of-sac-capitals-steven-cohen#r=hpt-ls
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