The Wall Street Journal-20080112-The Buzz- SAC Capital President Brian Cohn- Finance Chief Rowen Are Leaving
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The Buzz: SAC Capital President Brian Cohn, Finance Chief Rowen Are Leaving
Two senior executives are leaving Steven Cohen's big hedge fund, SAC Capital Advisors, including Mr. Cohen's right-hand man for the past 11 years.
The departures come on the heels of a year in which SAC beat both the market and most of its competitors but didn't match its own past performance.
Brian Cohn, 40 years old, SAC's president, told the firm Friday that he was quitting. The move is a surprise, according to people at SAC, although Mr. Cohn had been discussing his departure with Mr. Cohen in recent weeks.
Mr. Cohn helped Mr. Cohen, 51, grow the firm to an 800-person global powerhouse, though Mr. Cohn hasn't picked investments, so his departure may not affect SAC's results. In the summer, Mr. Cohn's 6- year-old son drowned in the family pool, and Mr. Cohn took time away from SAC, though he returned a few months ago.
"Brian will be missed both professionally and personally," Mr. Cohen said in an email to employees Friday afternoon.
Mr. Cohn wouldn't comment. The email said Mr. Cohn is taking time off and isn't joining another firm.
In 2007, SAC was up about 13% after the hefty fees it charges investors of as much as 50% of the firm's gains, along with a 3% annual fee. By way of comparison, the average hedge fund rose 11.6% last year, according to Hennessee Group LLC, while the S&P 500-stock index gained just more than 6% and bonds rose 7%. SAC, launched in 1992, has generated an average annual return to investors of more than 40%.
Meanwhile, James Rowen, 43, who has been SAC's chief financial officer, is leaving to become chief operating officer of another successful hedge fund, Jim Simons's Renaissance Technologies Corp. Mr. Rowen had been at SAC for almost three years. Previously, Mr. Rowen had been global head of prime equity at Deutsche Bank AG, where he was in charge of the unit providing financing and other services to hedge funds.
Daniel Berkowitz, who has run accounting and operations at SAC for almost eight years, will succeed Mr. Rowen as finance chief.
SAC of Greenwich, Conn., which has $15 billion under management, recently asked Moody's Investors Service to rate four of its funds. Some observers interpreted the unusual request, which resulted in a top rating from Moody's, as a possible prelude to a sale of part of the firm.
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Jed Horowitz contributed to this article.
