Tuesday, January 8, 2013

SAC Capital Said to Raise Fund Manager Bonuses




SAC Capital Advisors LP is raising bonuses for portfolio managers by 3 percentage points to help retain employees as the U.S. government’s insider-trading probe moves closer to Steven A. Cohen’s $14 billion hedge fund, a person familiar with the matter told Bloomberg.

The bonus increase announced today will be paid to equity, macro and commodity portfolio managers, said the person who asked not to be named because the information is private. The firm’s portfolio managers are typically paid an annual bonus of about 15 percent to 25 percent of the profits they generate from their investments, according to another person.

 “This raise should help to allay fears of some SAC employees,” said Michael Karp, chief executive officer of Options Group Inc., a New York-based recruiting firm. Hedge funds typically pay bonuses of about 10 percent to 12 percent with larger funds paying more…..

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