Citigroup Unit Said to Advise Clients Against SAC Funds
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Citigroup Inc.’s private bank is advising clients not to add money to Steven A. Cohen’s hedge fund SAC Capital Advisors LP, according to two people with knowledge of the matter.
Citigroup made the decision after the Nov. 20 arrest of a former SAC portfolio manager in what prosecutors called the most-lucrative insider trading scheme ever discovered, said one of the people, who asked not to be named because the information is private. It’s typical for the New York-based bank to put firms on its so-called watch list if they have received a large amount of news coverage, this person said.