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The Morning Brief: A Tiger Grandcub Is Born; Former SAC Capital Portfolio Manager Martoma Changes Lawyers

More intrigue on the insider trading front. Mathew Martoma, a former SAC Capital Advisors portfolio manager charged last year with insider trading, has changed legal counsel. Martoma, who has denied the charges and refused to cooperate with prosecutors, has retained Richard Strassberg of Goodwin Procter to replace Charles Stillman of Stillman & Friedman. The move raised the question of whether Martoma is rethinking the legal strategy and whether he is now more inclined to cooperate with federal prosecutors.

Another Tiger Grandcub is born. Michael Pausic, who oversees media and telecommunications investments at Lee Ainslie’s Maverick Capital, has launched his own hedge fund. Pausic had been with Maverick since 1997. Lee Ainslie left Julian Robertson’s Tiger Management to establish Maverick in 1993. Maverick partners reportedly plan to seed Pausic with a significant amount of money. Pausic and Ainslie have been friends since their college days at the University of Virginia, according to the report. Those who worked for Tiger Management are called Tiger Cubs, when they go on their own and those who worked for Tiger Cubs are dubbed Tiger Grandcubs when they move on to a new firm.

London’s BlueCrest Capital Management is busy poaching traders. It recently hired William Yearick, an interest-rate options trader from Deutsche Bank. He joined two other ex-DeutscheBank employees hired this year, John Roach, a mortgage-debt trader, and Matt Siravo, a distressed-debt trader. In the past two years BlueCrest also hired at least four other debt traders from Morgan Stanley and Bank of America Corp.

A former Omega Advisors executive was sentenced to time already served in prison for his role in an international bribery scheme 15 years ago. Clayton Lewis, who pleaded guilty in 2004 to federal charges. arlier served six days in prison. Under his deal he agreed to cooperate with the government’s investigation that won him a lenient sentence. He served six days in prison. Omega Advisors, led by Leon Cooperman, was never charged and has denied any wrongdoing. In 2007, Omega Advisors agreed to pay $500,000 to settle a government investigation.

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