Trades made in an SAC account that Steve Cohen oversees are being examined by federal prosecutors, according to the WSJ.
The trades — about which there is little specific information — were reportedly suggested by former portfolio managers Noah Freeman and Donald Longueuil, who have both admitted to insider trading.
“At issue is trading in a $3 billion stock portfolio personally overseen by Mr. Cohen at SAC Capital Advisors and referred to by the government in the filings as the “Cohen Account” and internally at SAC as “The Big Book,”” the WSJ reported.
Importantly, Cohen and SAC aren’t being accused of wrongdoing. Firstly, the filing doesn’t indicate if the trades being looked at were based on insider tips, or whether Cohen knew exactly why Freeman and Longueuil had suggested he make them.
“The development surfaced in court filings submitted in connection with a sweeping insider-trading investigation,” the WSJ said.
This is the first time that a fund that Cohen oversees has been linked to the sweeping insider trading investigation, but SAC has received two subpoena’s as part of the far-reaching probe.