This content is from: Portfolio

The Morning Brief: SAC Up 13 Percent This Year, Despite Legal Drama

Steve Cohen’s SAC Capital Advisors is reportedly up about 13 percent so far this year. This compares with a 4 percent to 5 percent gain for the average hedge fund through August. SAC, of course, is said to be negotiating a settlement with federal prosecutors stemming from charges that the Stamford, Connecticut hedge fund firm engaged in insider trading. The firm has fired several people, including marketing professionals, as it gears up to become little more than a family office.

Now this is what you call a huge markdown. Shares of J.C. Penney Wednesday plummeted another 15 percent, to close at $10.12, after Goldman Sachs reportedly questioned the strength of its liquidity. “Weak fundamentals, inventory rebuilding, and an underperforming home department will likely challenge J.C. Penney’s liquidity levels in the third quarter,” analyst Kristen McDuffy reportedly wrote in a client note. “In order to safeguard against a potentially poor fourth-quarter holiday season, it is likely that management will look to build a bigger liquidity buffer.”

Zynga surged another 4.7 percent or so and is now up 22 percent in the past seven days alone. There is no significant news out there, however. At the end of the second quarter, Tiger seed Tiger Consumer Management was the third largest shareholder of the company, which is known for its online games.

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