Steven A. Cohen

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Steven A. Cohen
Steven Cohen.jpg
Occupation Founder
Employer Point72 Asset Management
Location Stamford, Connecticut

Steven A. Cohen is the chairman and CEO of Point72 Asset Management, a Connecticut-based family office he founded in 2014, when he converted the investment operations of his former firm, hedge fund SAC Capital Advisors.[1] Point72 manages about $11 billion of his personal fortune.[2] With an estimated net worth of $12 billion in 2016, Cohen is listed as 37th on the Forbes 400 list. [3]

Background

King of Hedge Funds

Cohen is renowned not only for his ability to make money as a trader, but also for his penchant for spending it, on such things as a 30-room mansion in Greenwich, Connecticut and an art collection that includes works by Warhol, Picasso, Cézanne and other famous artists. [4]

Cohen began as an options trader with Gruntal & Co. in 1978. He started SAC Capital Advisors in 1992 with $25 million in assets. At its peak just before the conversion to a family office, SAC had over $50 billion under management, with a staff of 1000 people across the globe.[5]

Regulatory Woes

While often referred to as the "King of Hedge Funds," he was under close scrutiny by Federal authorities after a string of insider trading scandals involving ex-employees of SAC. On Nov. 20, 2012, Mathew Martoma, a former hedge fund portfolio manager with the CR Intrinsic Investors unit of SAC, was accused of perpetrating "the most lucrative insider trading scheme ever," according to Preet Bharara, the United States attorney in Manhattan, who brought the charges in Federal District Court in Manhattan. [6]

The SEC filed charges against Cohen in 2013 for failure to prevent insider trading by Martoma and Michael Steinberg, another ex-employee.[7]

In November 2013, The U.S Securities and Exchange Commission sought to bar Cohen from the financial services industry for life for failing to supervise Mathew Martoma and another employee. SAC Capital agreed to pay $ 1.8 billion in criminal and civil settlements and plead guilty to fraud charges stemming from insider trading by its employees.[8]

In January 2016, under the terms of a settlement with Cohen and his former firm, the SEC barred him from supervising funds that manage outside money until 2018.[9] The settlement did not require him to pay any penalties.[10]

Education

Cohen holds a bachelor's degree from University of Pennsylvania Wharton School of Business.

References

  1. Spotlight Swings to SAC Capital, Steven Cohen. Wall Street Journal.
  2. SEC and Steven Cohen Reach Settlement in Insider Trading Case. The New York Times.
  3. Steve Cohen. Forbes.
  4. Steve Cohen on Life, Love, His Art Collection, and Those Pesky Insider-Trading Rumors. Vanity Fair.
  5. SAC Capital Retrenches as Insider Trading Inquiry Drains Firm. New York Times.
  6. Insider Inquiry Inching Closer to a Billionaire. New York Times.
  7. SEC charges SAC Capital's Steven A. Cohen for failing to prevent insider trading by employees. CNBC.
  8. Insider trading case of Matthew Martoma, the largest in U.S. history, goes to jury. New York Daily News.
  9. Steven A. Cohen Barred From Supervisory Hedge Fund Role. Securities and Exchange Commission.
  10. SEC Bars Steven Cohen From Supervising Hedge Funds For Two Years. The Wall Street Journal.