Goldman pulls retirement cash from Omega

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Leon Cooperman’s Omega Advisors will not handle Goldman Sachs staff’ retirement cash after the hedge fund was charged with insider buying and selling.

The retirement committee that oversees the US financial institution’s $6.6bn programme determined on the finish of September to discontinue the Omega funding choice on its 401(okay) platform, based on an individual accustomed to the state of affairs. Goldman Sachs knowledgeable staff of the transfer on Wednesday in an inner memo.

Omega had overseen about $300m from Goldman Sachs staff. Bloomberg first reported the information.

The Securities and Change Fee charged Mr Cooperman and his $5.4bn hedge fund with insider buying and selling on September 21, in one of many highest-profile instances since Steven Cohen’s SAC Capital pleaded responsible to unlawful buying and selling three years in the past.

The SEC stated Mr Cooperman “generated substantial illicit income” of $four.1m by shopping for securities in Atlas Pipeline Companions, on the idea of inside info offered by a senior government of the corporate.

Mr Cooperman — certainly one of New York’s highest-profile hedge fund managers and a Goldman Sachs alumnus — has maintained that he and his fund have achieved “nothing improper” and denied the allegations, and has been outspoken about his intention to battle the fees.

On Wednesday he informed Bloomberg: “We’re disenchanted that [Goldman’s retirement committee] couldn’t make an unbiased determination. They’re rewarding the federal government for dangerous behaviour.”

Omega had been one in every of three choices for Goldman Sachs staff that was managed by exterior hedge funds, alongside Maverick and Och-Ziff, the individual stated. However Goldman Sachs pulled its cash from Och-Ziff, because the hedge fund hammered out a settlement with regulators over violations of anti-corruption legal guidelines. Och-Ziff — run by one other Goldman Sachs alumnus, Daniel Och — settled the fees final week.


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