Former CNBC bloviator Ron Insana is twice a victim of the financial meltdowns. Just two years ago, Insana left CNBC to start his own hedge fund management company. Last August, he was forced to shut it down, after losing an estimated 5.4 per cent in the first half of the year. He immediately joined SAC Capital, where his job was to…well, who knows. He got investors to pout $116 million into his Insana fund, so maybe he was some kind of salesman.
10 days from now will mark Insana’s last day at the SAC Capital, DealBook is reporting. There’s no word why Insana “decided to leave his post” at SAC.
Insana’s fund was given the humble name of “Legends Fund.” It was structured as a fund of funds. Basically, Ron was offering investors exposure to hedge funds they might otherwise be shut out of. Specifically, Insana offered investors access to SAC Capital Advisors, Renaissance Technologies Corp., Perry Corp. Third Point, Omega Advisors and Icahn Management. Well, sometime last summer it turned out there weren’t that many people “shut out” of those firms. A lot more people were shut in.
Don’t feel too bad for Insana. Between a 1.5% annual management fee and a 2.5% “sales charge,” Insana’s management company made probably made around $4 million from his brief stint managing money. We have no idea what he was paid by SAC Capital, but we’re guessing it was somewhere in the seven digits for the six months.