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Who is Steven Cohen? Early life and education, Investment career and Wealth (2021) (in few minutes) - YouTube
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Steven A. Cohen (born June 11, 1956) is an
American billionaire hedge fund manager and
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majority owner of the New York Mets of Major
League Baseball.
[13]
He is the founder of hedge fund Point72 Asset
Management and now-closed S.A.C.
[20]
Capital Advisors, both based in Stamford,
Connecticut.
[23]
He owns one of the world's most valuable private
art collections, worth over $1 billion, which
[30]
includes notable artworks such as Koons's
Rabbit, Picasso's Le Rêve, and Hirst's The
[37]
Physical Impossibility of Death in the Mind
of Someone Living.
[41]
In 2013, the Cohen-founded S.A.C.
[45]
Capital Advisors pleaded guilty to insider
trading and agreed to pay $1.8 billion in
[51]
fines ($900 million in forfeiture and $900
million in fines) in one of the biggest criminal
[58]
cases against a hedge fund.
[60]
Cohen was prohibited from managing outside
money for two years as part of the settlement
[65]
reached in the civil case over his accountability
for the scandal.
[69]
The hedge fund agreed to plead guilty to wire
fraud and four counts of securities fraud
[74]
and to close to outside investors.
[77]
Time Magazine ranked him 94th on its annual
Time 100 list of most influential people in
[83]
2007.
[85]
As of February 2020, he has an estimated net
worth of US$14.1 billion.
[91]
Early life and education.
[94]
Cohen grew up in a Jewish family in Great
Neck, New York, where his father was a dress
[99]
manufacturer in Manhattan's garment district,
and his mother was a piano teacher.
[105]
He is the third of seven brothers and sisters.
[107]
He took a liking to poker as a high school
student, often betting his own money in tournaments,
[113]
and credits the game with teaching him how
to take risks.
[117]
Cohen graduated from John L. Miller Great
Neck North High School in 1974, where he played
[123]
on the school's soccer team.
[124]
Cohen received an economics degree from the
Wharton School at the University of Pennsylvania
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in 1978.
[132]
While in school, Cohen was initiated as a
brother of Zeta Beta Tau Fraternity's Theta
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Chapter where he served as Treasurer.
[140]
While in school, a friend helped him open
a brokerage account with $1,000 of his tuition
[145]
money.
[147]
Investment career.
[148]
Gruntal Co. (1978–1992).
[153]
In 1978, after graduating from Wharton, Cohen
got a Wall Street job as a junior trader in
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the options arbitrage department at Gruntal
Co.
[162]
His first day on the job at Gruntal Co., he
made an $8,000 profit.
[167]
He would eventually go on to make the company
around $100,000 a day and eventually managed
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a $75 million portfolio and six traders.
[177]
Cohen was running his own trading group at
Gruntal Co. by 1984, and continued running
[183]
it until he started his own company, SAC.
[186]
Throughout the late 1980s, the Securities
and Exchange Commission became suspicious
[192]
that Cohen had used inside information in
December 1985 when he bet that RCA and GE
[198]
would merge, ahead of the announcement.
[200]
The SEC called him to testify, but he refused
to answer any questions, invoking his right
[207]
against self-incrimination.
[208]
Then, the SEC started looking into his other
investments from the same period, especially
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those involving Brett K. Lurie.
[217]
S.A.C.
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Capital Advisors (1992–2016).
[220]
In 1992, Cohen started S.A.C.
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Capital Advisors with $10 million of his own
money and another $10 million from outside
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capital.
[235]
The company's name 'SAC Capital' derived from
Steven A. Cohen's initials.
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In 2003, the New York Times wrote that SAC
is one of the biggest hedge funds and is known
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for frequent and rapid trading.
[247]
In 2006, the Wall Street Journal reported
that while Cohen was once a rapid-fire trader
[252]
who never held trading positions for extended
periods of time, he now holds an increasing
[258]
number of equities for longer periods of time.
[261]
As of 2009, the firm managed $14 billion in
equity.
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Racketeering and insider trading charges.
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In December 2009, Cohen and his brother Donald
T. Cohen were sued by Steven's ex-wife Patricia
[276]
Cohen for racketeering and insider trading
charges.
[280]
On March 30, 2011, the United States District
Court in Lower Manhattan dismissed the case,
[287]
but on April 3, 2013, the 2nd U.S. Circuit
Court of Appeals in New York said a lower
[293]
court had erred in dismissing fraud-based
claims by his former spouse and revived the
[298]
lawsuit.
[299]
The appeals court also revived claims of racketeering
and breach of fiduciary duty, while upholding
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the dismissal of an unjust enrichment claim.
[309]
Writing for a three-judge panel, Circuit Judge
Pierre N. Leval said Patricia Cohen had made
[314]
a plausible allegation that Steven Cohen had
concealed the $5.5 million during negotiations
[320]
on a separation agreement in 1989, which preceded
the divorce.
[325]
The revival of the lawsuit comes amid mounting
pressure on Steven Cohen over an insider trading
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investigation that led to the arrest of Michael
Steinberg, one of Cohen's closest confidantes
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at SAC Capital.
[337]
SAC affiliates reached two civil insider trading
settlements totaling nearly $616 million with
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the U.S. Securities and Exchange Commission.
[348]
SAC neither admitted nor denied wrongdoing
in either case.
[353]
SEC investigation (2012–2016).
[358]
On November 20, 2012, Cohen was implicated
in an alleged insider trading scandal involving
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an ex-SAC manager, Mathew Martoma.
[368]
The SEC brought charges against a number of
other SAC employees from 2010 to 2013 with
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various outcomes.
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Martoma was convicted in 2014, in what federal
prosecutors billed as the most profitable
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insider-trading conspiracy in history.
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The SEC later brought a civil lawsuit against
Cohen, alleging his failure to supervise Martoma
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and Michael Steinberg, who was a senior employee
and confidant of Cohen's.
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Cohen settled his civil case with regulators
in January 2016 the agreement with the SEC
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prohibited Cohen from managing outside money
until 2018.
[409]
S.A.C.
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Capital Advisors pleaded guilty to insider
trading charges in 2013 and paid $1.8 billion
[418]
in penalties and was required to stop handling
investments for outsiders.
[424]
Cohen escaped criminal indictment himself
despite being the living, breathing heart
[428]
of S.A.C.
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Capital, but Dr. Sidney Gilman, the star prosecution
witness against Martoma, testified that FBI
[436]
agents told him that Cohen was the investigation's
ultimate target.
[441]
He was featured in a January 2017 New Yorker
article titled, When The Feds Went After The
[447]
Hedge-Fund Legend Steven A. Cohen.
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Point72 Ventures (2014–present).
[453]
In 2014, Cohen founded Point72 Ventures, a
venture capital fund that makes early-stage
[461]
investments.
[462]
GameStop short squeeze.
[464]
In January 2021, Cohen's hedge fund Point72
joined Ken Griffin's Citadel in putting $2.75
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billion into Melvin Capital as a result of
the GameStop short squeeze, the hedge fund
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of Gabe Plotkin, a former Cohen protege.
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Wealth.
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In 2016, Forbes Magazine estimated Cohen's
fortune at $13 billion, ranking him the 30th
[490]
richest person in the United States.
[493]
Cohen was dubbed the hedge fund king in a
2006 Wall Street Journal article.
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His 2005 compensation was reportedly $1 billion,
considerably higher than his 2001 compensation
[506]
of $428 million.
[509]
In February 2015, Forbes listed Cohen as the
highest-earning hedge fund manager in 2014.
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In December 2013, Cohen's New York penthouse
in the Bloomberg Tower was listed for sale
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for $98 million.
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