There’s a lot of chatter on Wall Street and up through Connecticut’s Greenwich-centered hedge fund archipelago about which hedge fund was the target of an alleged blackmail scheme by Rabbi Milton Balkany.
No one knows for sure. But lots and lots of people suspect it is the famously secretive SAC Capital.
Why SAC? For one thing, ever since the Galleon insider trading case all eyes have been on SAC. Years and years of unbelievably great returns have long led to speculation that Stevie Cohen’s shop must have some dirt around its trades. Can they really be that good?
That’s a bit unfair, of course. Maybe they are just that good. Or that lucky. Some of the suspicions about SAC are probably rooted nothing other than envy. People are almost rooting for the feds to turn up something on SAC because they want to see the mighty fall. It also provides a convenient excuse to under-performing hedge managers: our returns aren’t like SAC’s but that’s because SAC is dirty.
Regardless of the reasons, people are once again looking at SAC as the most likely target of the insider trading blackmail. But, as far as we can tell, no one actually knows anything.
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