SAC to start keeping closer watch over workers

SAC Capital Advisors signage outside the company's headquarters in Stamford, Conn.
Victor J. Blue | Bloomberg | Getty Images

Hoping to boost surveillance in the wake of numerous insider-trading investigations that ultimately ended its life as a public hedge fund, SAC Capital has hired a Silicon Valley data miner that has done work for the Central Intelligence Agency and the Federal Bureau of Investigation in order to keep closer tabs on its own employees.

In a memo issued to employees Wednesday afternoon, SAC President Tom Conheeney announced the hiring of Palantir Technologies, a closely held Palo Alto, Calif., company that specializes in crunching data for large institutions.

"Palantir's analytics give us a powerful new tool for our compliance and surveillance team and we have also found promising uses for our due diligence and hiring teams," Conheeney wrote. "This innovative approach will further help protect us from information and people that could potentially taint the firm."