Steven Cohen is a changed man according to the description given by Doug Haynes, president of Point72 — the thousand-person operation dedicated to growing the billionaire art collector’s fortune.
The Mr Cohen of old was a snarling and aggressive trader who dominated the giant trading floor at the heart of SAC Capital, his Connecticut hedge fund renowned for its unmatched investment performance and fees. His dedication to the desk was stuff of Wall Street legend, at one point causing him to be late to the birth of a child. His was the trading book which mattered, pouring money behind underlings’ bets as the mood took him, the centre through which good ideas must flow.
Now though Mr Cohen will regularly take time out of the trading day just to mentor young staff, part of the apprenticeship culture at the firm, according to Mr Haynes:
He meets with a portfolio manager and their team three or four days a week usually for breakfast, usually for an hour, an hour and a half, purely to to provide coaching. It’s not an evaluation, its not a review, he just digs in and shares his experience. He probably does that on ad hoc basis two or three times a day, through the course of the day.
The SEC just will not lay off this particular hedgie…
Washington D.C., Jan. 8, 2016 — The Securities and Exchange Commission today announced that hedge fund manager Steven A. Cohen will be prohibited from supervising funds that manage outside money until 2018 in order to settle charges for failing to supervise a former portfolio manager who engaged in insider trading while employed at his firm. In addition, Cohen’s family office firms will be subject to SEC examinations and the firms must retain an independent consultant to conduct periodic reviews of their activities to ensure compliance with securities laws. Read more
From the criminal indictment just filed in a Manhattan court, charging four SAC Capital corporate entities with responsibility for insider trading conducted at “various times between in or about 1999 through at least in or about 2010″… Read more
He is obsessed with trading, and he trades to win. If he cruises the Caribbean or flies off to London, an SAC advance team races ahead of him to set up trading screens…
- New York Times, A Fascination of Wall St., and Investigators, Dec 2012 Read more
Friday was a very very hot day on the East Coast. We wonder if they’re staying cool on SAC’s trading floor this afternoon…
Click for the SEC’s order alleging that Steve Cohen “failed reasonably to supervise” two SAC traders involved in trading Elan and Dell stock. It’s not the kind of claim against Cohen which many could really have been expecting in this sprawling, almost absurdly diffident insider-trading investigation. Read more
Washington, D.C., March 15, 2013 — The Securities and Exchange Commission today announced that Stamford, Conn.-based hedge fund advisory firm CR Intrinsic Investors has agreed to pay more than $600 million to settle SEC charges that it participated in an insider trading scheme involving a clinical trial for an Alzheimer’s drug being jointly developed by two pharmaceutical companies…
That’s the largest insider trading settlement ever. And is more than Goldman paid to settle Abacus. Read more
US prosecutors are examining trades made in an account overseen by hedge-fund titan Steven Cohen that were suggested by two of his former fund managers who have pleaded guilty to insider trading, reports the WSJ. The development surfaced in court filings submitted in connection with a sweeping insider-trading probe.. At issue is trading in a $3bn stock portfolio personally overseen Cohen at SAC Capital Advisors and referred to by the government in the filings as the “Cohen Account” and internally at SAC as “The Big Book.” SAC portfolio managers gave their best trading ideas to Cohen for this account and were paid a bonus if they generated big returns for him, say people close to the matter. As part of the broad probe, the US is examining trades in the Cohen Account suggested by two former portfolio managers, Noah Freeman and Donald Longueuil; both have pleaded guilty to securities-fraud charges for trading on inside information.
The insider trading investigations continue — and move beyond expert networks. From the FT on Tuesday:
Federal prosecutors have charged three hedge fund portfolio managers and a hedge fund analyst with insider trading.
Steve Cohen, head of the $12bn SAC Capital hedge fund, has assured his investors that they will suffer “no financial impact” as a result of a wide-ranging federal probe into insider trading on Wall Street, reports the FT. SAC, based in Stamford, Connecticut, has been subpoenaed along with several other hedge funds and mutual funds as part of the investigation by Preet Bharara, the US attorney in Manhattan. Neither SAC nor any of its employees have been accused of wrongdoing. Cohen said in a year-end letter to investors sent on Jan 31 that they would not suffer losses relating to the probe and that the management company would bear any resulting expense.
We watched the video, so you don’t have to…
Vanity Fair promo: Read more
SAC Capital, the secretive $16bn (£10bn) hedge fund group run by Steve Cohen, has invested in a new London-based fund run by one of its former star traders. RWC Partners’ new US Absolute Alpha fund, run by Mike Corcell, is expected to launch on Thursday. The fund has raised $350m – making it one of the largest UK launches to date. Investors are expected to commit a further $200m over the next few months. Corcell joined RWC in June, having previously run a large portfolio at SAC.
Cosmos Bank, Taiwan’s largest issuer of cash cards, edged closer to completing its recapitalisation on Wednesday as more than 93% of bondholders agreed to exchange T$12.4bn ($382m) in debt for an 11% equity stake. The agreements come as the bank awaits $900m in funds from SAC Capital, the private equity arm of the US hedge fund group, and GE Money, a finance business of GE, which agreed in September to jointly buy an 80% stake. Cosmos is one of several smaller Taiwanese banks caught in a crisis in unsecured consumer lending last year. As a result, the government has taken over numerous insolvent lenders and auctioned off part of their assets. Two other lenders, Entie Bank and Ta Chong Bank, sold stakes to Longreach Group and Carlyle Group, respectively.
Salacious allegations concerning traders at first rank hedge fund SAC Capital have begun to emerge from a Manhattan court hearing, with one employee claiming he was forced by his boss to take female hormones – and also wear articles of women’s clothing – to take the edge off his aggressive male attitude.
The hormones were supposed to make the trader more “detail orientated,” but it has yet to be explained while SAC didn’t simply hire more women. Read more
SAC Capital raised $1bn last week when the US hedge fund briefly began accepting investor money, underscoring healthy demand for the most successful funds even during difficult times. SAC, a $14bn manager run by billionaire art collector and founder Steven Cohen, pulled in the money for its flagship $7bn fund despite a poor August, when investors said it was down 3 per cent. It remained up 10 per cent for the year. The fundraising highlights the appeal of the top hedge funds for investors, although some investors said smaller funds might suffer as a result.
In case you missed it:
Taiwan’s Cosmos to sell SAC, GE $900m stake
Cosmos Bank, the Taiwanese lender, narrowly avoided a takeover by the government on Friday by agreeing to sell a controlling stake to SAC Capital, a US hedge fund group, and GE Money at a steep discount.
Barclays puts $1.4bn into Cairn fund
Barclays on Friday threw a $1.4bn lifeline to a troubled debt vehicle it created for Cairn Capital, the London-based hedge fund, and suggested it was considering similar moves for others. Read more
SAC Capital, the $14bn hedge fund run by billionaire Steven Cohen, is considering selling up to 20 per cent of itself to private minority investors. Mr Cohen is known as one of the world’s most successful – and secretive – hedge fund managers. SAC’s assets under management are thought to include about $7bn of Mr Cohen’s money. More recently, Mr Cohen has moved into activism, building stakes in companies such as Bausch & Lomb and TD Ameritrade. SAC has been marketing possible stakes in its management company to investors including Singapore’s Temasek. Lehman Brothers is said to be working on the sales.
The hedge fund world isn’t famous for its transparency, but some funds are more mysterious than others. Hedge Fund Reader lists the 25 names that out-intrigue, out-conspire and out-enigma the rest. Eye-catching entries (with their rankings and descriptions by Hedge Fund Reader) include:
1. SAC Capital Partners: “Secrecy may be Steve Cohen’s middle name but that didn’t stop his hedge fund from being embroiled in controversy over the Fairfax Financial Holdings affair…The “new prince of Wall Street” and the “hedge fund king” are sobriquets that lie lightly on Cohen’s shoulders — all he’s interested in is ruling his kingdom with an iron (secretive) fist.” Read more
KKR on Sunday night teamed up with a consortium including banks and hedge funds to buy Laureate Education, the Baltimore-based university group, in a $3.8bn deal.
The deal, clinched at $60.50 per share, or nearly 20 per cent higher than Laureate’s value over the last month, is the latest in a string of management buy-outs in the US. Read more
A good year for SAC and Citadel but not so much for Goldman Sachs. Bloomberg reports that the hedge funds run by Steve Cohen and Ken Griffin gained more than 30 per cent in 2006, but Goldman’s flagship fund declined for the first time in seven years.
Goldman may have retained its top spot in the global M&A rankings in last year’s boom for deal-making, and scooped a host of headline honours at the IFR awards in London last week, but its Global Alpha Fund ended the year with a 6 per cent loss. In contrast, SAC Capital delivered a return of 34 per cent and Citadel also topped 30 per cent, says Bloomberg citing investors in those funds. Citadel was helped by the natural gas positions that it took over when fellow hedge fund Amaranth collapsed last year. Read more
Casino billionaire Steve Wynn did $54m of damage when he put his elbow through a Picasso he was about to sell to Steven Cohen of SAC Capital Advisors, according to Bloomberg, via Albourne Village.
That’s the claim Mr Wynn has lodged with Lloyd’s of London, which the chairman of gaming group Wynn Resorts is now suing. Read more