Steven A. Cohen

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Steven A. Cohen
Born (1956-06-11) June 11, 1956 (age 63)
ResidenceGreenwich, Connecticut, U.S.[1]
NationalityAmerican
Alma materThe Wharton School of the University of Pennsylvania
OccupationInvestor, hedge fund manager, and philanthropist
Known forFounding and leading:
S.A.C. Capital Advisors &
Point72 Asset Management
SalaryUS$700 million (2018)[2]
Net worthUS$12.8 billion (April 2019)[1]
Spouse(s)
Patricia Finke
(m. 1979; div. 1990)
[3]
Alexandra Garcia (m. 1992)
Children7[1]

Steven A. Cohen (born June 11, 1956) is an American investor, hedge fund manager, and philanthropist. He is the founder of Point72 Asset Management and S.A.C. Capital Advisors both based in Stamford, Connecticut.[4] Time Magazine ranked him 94th in 2007 on its annual Time 100 list of most influential people.[5][6] In 2011 he was included in the 50 Most Influential ranking of Bloomberg Markets Magazine;[7] as of April 2019 he has an estimated net worth of US$12.8 billion.[1]

Early life and education[edit]

Cohen grew up in a Jewish family [8][9] in Great Neck, New York, where his father was a dress manufacturer in Manhattan's garment district, and his mother was a piano teacher,[5] he is the third of seven brothers and sisters. He took a liking to poker as a high-school student, often betting his own money in tournaments, and credits the game with teaching him "how to take risks."[5] Cohen received an economics degree from the Wharton School at the University of Pennsylvania in 1978, he was a brother of Zeta Beta Tau fraternity, Theta Chapter.[10][11] While in school, a friend helped him open a brokerage account with $1,000 of his tuition money.[5]

Investment career[edit]

1978 - 1992 Gruntal & Co. - In 1978 after graduating from Wharton Cohen got a Wall Street job as a junior trader in the options arbitrage department at Gruntal & Co..[5] His first day on the job at Gruntal & Co., he made an $8,000 profit. He would eventually go on to make the company around $100,000 a day,[10] and he eventually managed a $75 million portfolio and six traders.[5] Cohen was running his own trading group at Gruntal & Co. by 1984, and continued running it until he started his own company, SAC.[10]

1992 Founds S.A.C. Capital Advisors - In 1992, Cohen started S.A.C. Capital Advisors with $10 million of his own money, and another $10M from outside capital. The company's name 'SAC Capital' derived from Steven A Cohen's initials.[12]

In 2003 the New York Times described "SAC is one of the biggest hedge funds and is known for frequent and rapid trading."[13] In 2006 the WSJ reported that what was once as a rapid-fire trader who never held trading positions for extended periods of time was replaced, Cohen now holds an increasing number of equities for longer periods of time.[5][6]

As of 2009, the firm managed $14 billion in equity.[14]

2012 - 2016 SEC Investigation - On November 20, 2012, Cohen was implicated in an alleged insider trading scandal involving an ex-SAC manager, Mathew Martoma.[15][16] The SEC brought charges against a number of other SAC employees from 2010 to 2013, with various outcomes. Martoma was convicted in 2014, in what federal prosecutors billed as the most profitable insider-trading conspiracy in history;[17] the SEC later brought a civil lawsuit against Cohen, alleging his failure to supervise Martoma and Michael Steinberg, who was a senior employee and confidant of Cohen's.[18] Cohen settled his civil case with regulators in January 2016; the agreement with the SEC prohibited Cohen from managing outside money until 2018.[18]

S.A.C. Capital Advisors "pleaded guilty to insider trading charges in 2013 and paid $1.8bn in penalties" and was required to stop handling investments for outsiders.[12] Cohen "escaped criminal indictment himself despite being the living, breathing heart of SAC Capital,"[12] but Dr. Sidney Gilman, the star prosecution witness against Martoma, testified that FBI agents told him Cohen was the investigation's ultimate target,[19] he was featured in a January 2017 New Yorker article, titled "When The Feds Went After The Hedge-Fund Legend Steven A. Cohen".[20]

2016 Point72 Ventures In May 2016 Cohen founded Point72 Ventures "a venture capital fund that makes early-stage investments."[21]

Wealth & investments[edit]

In 2016, Forbes Magazine estimated Cohen's fortune at $13 billion, ranking him the 30th richest person in the United States.[22] Cohen was dubbed "the hedge fund king" in a 2006 Wall Street Journal article, his 2005 compensation was reportedly $1 billion,[23] considerably higher than his 2001 compensation ($428 million).[10] In February 2015, Forbes listed Cohen as the highest-earning hedge fund manager in 2014[24] In December 2013, Cohen's New York penthouse in the Bloomberg Tower was listed for sale for $98 million.[25] Cohen is one of the minority owners of the New York Mets, and holds a four percent stake in the baseball team.[26]

Philanthropy[edit]

Trustee - Cohen serves on the board of trustees of the New York-based Robin Hood Foundation.[11][27][28]

Steven & Alexandra Cohen Foundation[edit]

Cohen and his wife Alexandra have donated to projects involved in health, education, arts and culture, and New York community.[29] In 2014, the Cohen Foundation provided funding, via the New York University Langone Center, for the study of post-traumatic stress and traumatic brain injury.[30] Cohen has committed $30 million toward research to accelerate development of biomarker tests and drug-based therapies for the conditions.[31]

The Steven & Alexandra Cohen Foundation gave a grant in excess of $100,000 to the Bruce Museum of Arts and Science in 2014, to support arts education and family programming.[32]

Cohen Veterans Network[edit]

In April 2016, Cohen announced the creation and a commitment of $275 million to the Cohen Veterans Network;[33] the CVN's goal is to establish mental health centers for veterans and their families throughout the U.S..[33] The goal is the establishment of 20-25 centers by 2020.[33]

Cohen Veterans Bioscience[edit]

Cohen Veterans Bioscience, also funded by Steve Cohen, conducts research into the effects of Posttraumatic stress disorder on combat veterans.[33]

Personal donations[edit]

Political - In 2015, Steven Cohen and his wife, Alexandra, donated $2.25 million to a Super PAC called America Leads that supported the presidential candidacy of Chris Christie.[34]

Art collection[edit]

2000 Begins collecting Impressionists - The New York Times reported that Cohen began "serious collecting" art in 2000.[35] Cohen's tastes and collection began with Impressionist painters acquiring works by Manet and Monet after which he moved quickly into contemporary art.[35]

Begins Contemporary art collecting While he has collected works from important emerging artists such as Adam Pendleton,[36] he is most famous for collecting 'trophy' art—signature works by famous artists[37]—including a Pollock drip painting from David Geffen for $52 million and Damien Hirst's The Physical Impossibility of Death in the Mind of Someone Living, a piece that the artist had bought back from Charles Saatchi for $8 million.[38]

In 2006, Cohen attempted to make the most expensive art purchase in history when he offered to purchase Picasso's Le Rêve from casino mogul Steve Wynn for $139 million. Just days before the painting was to be transported to Cohen, Wynn, who suffers from poor vision due to retinitis pigmentosa, accidentally thrust his elbow through the painting while showing it to a group of acquaintances inside of his office at Wynn Las Vegas; the purchase was canceled, and Wynn still held the painting[39] until early November 2012, when Cohen finally acquired the painting for $150 million.[3]

Scope and housing of the collection - He owns or has owned artworks by Lucio Fontana, Alberto Giacometti, Willem de Kooning, Jeff Koons, Edvard Munch, Pablo Picasso, and Andy Warhol.[40][41][42][43] Also in 2015, he reportedly bought the world's most expensive sculpture, Alberto Giacometti's Man Pointing.[44] A 2015 estimate valued his art collection at about $1 billion.[40] Cohen is reportedly building a private museum for some of his artwork on his Greenwich property. Cohen has also placed Marc Quinn's Self, a head sculpture made of frozen blood, in the SAC lobby.[45]

Legacy and awards[edit]

In 2008, he was inducted into Institutional Investors Alpha's Hedge Fund Manager Hall of Fame along with Alfred Jones, Bruce Kovner, David Swensen, George Soros, Jack Nash, James Simons, Julian Roberston, Kenneth Griffin, Leon Levy, Louis Bacon, Michael Steinhardt, Paul Tudor Jones and Seth Klarman.[46]

Personal life[edit]

Family - Cohen has been married twice.[5] In 1979, he married Patricia Finke, a New York native from a working-class background who grew up in the Washington Heights, Manhattan neighborhood of New York City,[47] they had two children together.[47] They divorced in 1990.[47] In 1992, he married Alexandra Garcia, a working single mom of Puerto Rican descent who also grew up in Washington Heights,[47] they have four children together.[47] They live in Greenwich, Connecticut, with their seven children (their four children along with Alexandra's prior child and his two children with his first wife, Patricia).[5]

In 1998, the Cohens purchased a 35,000-square-foot (3,300 m2) home on 14 acres (57,000 m2) in Greenwich.[48][10]

Legal - In December 2009, Cohen and his brother Donald T. Cohen were sued by Steven's ex-wife Patricia Cohen for racketeering and insider trading charges.[49] On March 30, 2011, the United States District Court in Lower Manhattan dismissed the case, but on 3 April 2013, the 2nd U.S. Circuit Court of Appeals in New York said a lower court had erred in dismissing fraud-based claims by his former spouse and revived the lawsuit.[50][51][3][52]

See also[edit]

References[edit]

  1. ^ a b c d "Forbes profile: Steve Cohen". Forbes. Retrieved April 5, 2019.
  2. ^ "The Highest-Earning Hedge Fund Managers & Traders - 2018 Ranking". United States: Forbes. Forbes Media LLC. April 23, 2018. Archived from the original on April 23, 2018. Retrieved March 17, 2018. Cite uses deprecated parameter |dead-url= (help)
  3. ^ a b c Lattman, Peter; Vogel, Carol (April 3, 2013). "Suit by Ex-Wife of SAC's Cohen Revived on Appeal" (DealBook). New York, N.Y., United States: New York Times. The New York Times Company. p. B1. Retrieved April 4, 2013.
  4. ^ Goldstein, Matthew (April 7, 2014). "SAC Capital, Meet Point72 Asset Management". New York, N.Y., United States: New York Times. The New York Times Company. p. B5. Retrieved June 12, 2019.
  5. ^ a b c d e f g h i Pulliam, Susan (September 16, 2006). "The Hedge-Fund King Is Getting Nervous". New York, N.Y., United States: Wall Street Journal. Dow Jones & Company Inc. p. A1. Retrieved November 16, 2009.
  6. ^ a b Fox, Justin (March 5, 2007). "Time 100 – Steven Cohen". Time Magazine. Retrieved November 16, 2009.
  7. ^ Dieterich, Robert S. (September 7, 2011). "Most Influential 50 in Global Finance List: Bloomberg Markets". Bloomberg Businessweek.
  8. ^ Kampeas, Ron (May 14, 2011). "Jewish, Republican, pro-gay rights". Capital J. Archived from the original on May 19, 2011. Cite uses deprecated parameter |deadurl= (help)CS1 maint: unfit url (link)
  9. ^ The Tablet: "Tribal Allegiance: A Brooklyn rabbi thought he could swindle hedge-fund king Steven Cohen by playing on his Judaism. It was a bad bet." By Allison Hoffman Archived August 21, 2016, at the Wayback Machine December 16, 2010
  10. ^ a b c d e Vickers, Marcia (July 21, 2003). "The Most Powerful Trader on Wall Street You've Never Heard Of". Bloomberg Businessweek. Bloomberg L.P. Retrieved July 25, 2006.
  11. ^ a b "New Brown fellows, trustees, and officers announced". Today at Brown. Brown University. May 28, 2008. Retrieved November 16, 2009.
  12. ^ a b c Gapper, John (February 16, 2017). "How Steven Cohen survived an insider trading scandal". Financial Times. Nikkei. Retrieved May 23, 2017.
  13. ^ Morgensonjan, Gretchen (January 15, 2003). "Wall St. Analyst and Husband Under Scrutiny". United States: New York Times; the New York Times Company. p. C1. Retrieved June 15, 2019.
  14. ^ Burton, Katherine; Saijel Kishan (October 11, 2009). "SAC Said to Tell Clients a Review Found No Suspicious Trading". Bloomberg.com. Retrieved November 16, 2009.
  15. ^ Bray, Chad (November 20, 2012). "Steven Cohen Implicated in Alleged Insider-Trading Scheme". Wall Street Journal. Retrieved November 20, 2012.
  16. ^ Van Voris, Bob; Patricia Hurtado (November 20, 2012). "Ex-SAC Manager Martoma Charged in Record Insider Scheme". Bloomburg. Retrieved November 20, 2012.
  17. ^ McCoy, Kevin (February 6, 2014). "Martoma convicted in insider trading case". USA Today.
  18. ^ a b Viswanatha, Aruna; Chung, Juliet (January 8, 2016). "Deal Ends SEC's Pursuit of Steven Cohen". Wall Street Journal.
  19. ^ Celarier, Michael (January 24, 2014). "Gilman Testifies Cohen was real FBI target". NY Post.
  20. ^ Kolhatkar, Sheelah (January 16, 2017). "When the Feds Went After the Hedge-Fund Legend Steven A. Cohen – The New Yorker". The New Yorker. Retrieved April 10, 2017.
  21. ^ Schott, Paul (May 14, 2019). "Cohen's Point72 Ventures announces eight-figure investments" (Business). Stamford, CT, United States: Stamford Advocate. Hearst Media Services Connecticut, LLC. Retrieved June 18, 2019.
  22. ^ "#72 Steve Cohen". Forbes. September 11, 2016.
  23. ^ "News, Articles, Videos and Photos Search Results - WSJ.com". wsj.com.
  24. ^ Vardi, Nathan (February 25, 2015). "The 25 Highest-Earning Hedge Fund Managers And Traders (2015)". United States: Forbes. Forbes Media LLC. Retrieved September 11, 2016.
  25. ^ Matt Chaban (December 31, 2013). "Stephen A. Cohen cuts the price on his $117M duplex in the Bloomberg Tower". Daily News (New York).
  26. ^ Svea Herbst-Bayliss (February 23, 2012). "SAC's Cohen buys small stake in New York Mets". Reuters.
  27. ^ "The Corporation of Brown University: Trustees". Brown University. February 2009. Archived from the original on June 9, 2008. Retrieved January 4, 2010.
  28. ^ "Robin Hood Foundation – Board of Directors". The Robin Hood Foundation. Archived from the original on March 25, 2009. Retrieved January 4, 2010. Cite uses deprecated parameter |deadurl= (help)
  29. ^ "Steven A. Cohen – Wall Street Donors | Individuals | Foundations – Inside Philanthropy". www.insidephilanthropy.com. Retrieved April 13, 2016.
  30. ^ Kime, Patricia (November 5, 2014). "Medical tests for PTSD and TBI not far off". Military Times.
  31. ^ Gordon, Amanda (April 6, 2016). "Steven Cohen Pledges $275 Million to Veteran Mental Health Care". Bloomberg.
  32. ^ Bind, Barbara (November 9, 2014). "With new grant, Bruce Museum adds family programs". Greenwich Time.
  33. ^ a b c d Fox, Emily Jane (April 8, 2016). "Billionaire Hedge-Fund Manager Pledges $275 Million to Veteran Mental-Health Care". Vanity Fair. Condé Nast. Retrieved June 18, 2019.
  34. ^ Confessore, Nicholas (July 31, 2015). "Chris Christie 'Super PAC' Raises $11 Million From a Handful of Donors" (FirstDraft). United States: New York Times; the New York Times Company. Retrieved June 16, 2019.
  35. ^ a b Landon, Thomas; Vogel, Carol (March 3, 2005). "A New Prince of Wall Street Buys Up Art" (Business Day). New York, N.Y., United States: New York Times. The New York Times Company. Retrieved April 16, 2016.
  36. ^ Gamerman, Ellen (April 16, 2015). "Adam Pendleton: The Making of an Art-World Star". The Wall Street Journal.
  37. ^ Haden-Guest, Anthony (March 9, 2005). "Top Billionaire Art Collectors". Forbes.
  38. ^ Smarthistory – Hirst's Shark: Interpreting Contemporary Art Archived November 26, 2014, at the Wayback Machine, video, Beth Harris, Sal Khan and Steven Zucker commentators, 7:49. accessed December 19, 2012
  39. ^ "My Weekend in Vegas". The Huffington Post. October 16, 2006.
  40. ^ a b Kazakina, Katya (November 4, 2015). "Steve Cohen Is Trading Art Like Stocks". Bloomberg News. Bloomberg L.P. Retrieved May 23, 2016.
  41. ^ Goldstein, Matthew (January 19, 2016). "Morgan Stanley Provides Billionaire Steven Cohen With Loan Secured by Art" (DealBook). New York, N.Y., United States: New York Times. The New York Times Company. p. B6. Retrieved June 21, 2016.
  42. ^ Vogel, Carol (October 12, 2006). "Works by Johns and de Kooning Sell for $143.5 Million". The New York Times. Retrieved May 24, 2010.
  43. ^ Vogel, Carol (November 18, 2006). "Landmark De Kooning Crowns Collection". The New York Times. Retrieved May 24, 2010.
  44. ^ Smith, Emily (June 8, 2015). "Man who bought the world's most expensive sculpture revealed". Page Six.
  45. ^ "An art shark on the trading floor". The First Post. October 23, 2006. Archived from the original on November 28, 2006.
  46. ^ "Cohen, Simons, 12 Others Enter Hedge Fund Hall". Institutional Investor. Institutional Investor LLC. September 23, 2008. Retrieved June 16, 2019.
  47. ^ a b c d e Fishman, Steve; Dangremond, Sam (March 26, 2010). "Divorced, Never Separated". New York, N.Y., United States: New York Magazine. New York Media LLC. Retrieved April 21, 2012.
  48. ^ Edmonston, Peter; Kouwe, Zachery (November 14, 2008). "For Steven Cohen, 35,000 Square Feet Isn't Enough" (DealBook). New York, N.Y., United States: New York Times. The New York Times Company. Retrieved June 15, 2019.
  49. ^ Bray, Chad; Strasburg, Jenny (December 17, 2009). "Steven Cohen Sued by Ex-Wife". New York, N.Y., United States: Wall Street Journal. Dow Jones & Company Inc. p. C4. ISSN 0099-9660. Retrieved January 4, 2010.
  50. ^ Ahmed, Azam (March 30, 2011). "Ex-Wife's Suit Against Steven Cohen Is Dismissed" (DealBook). United States: New York Times; the New York Times Company. Retrieved April 2, 2015.
  51. ^ Vaughan, Bernard; Raymond, Nate (April 3, 2013). "SAC's Cohen must face fraud claims by ex-wife" (Business News). New York, N.Y., United States: Reuters. Thompson Reuters. Retrieved September 23, 2013.
  52. ^ Chung, Juliet (April 3, 2013). "New Divorce Fight for SAC's Cohen" (Deals & Deal Makers). New York, N.Y., United States: Wall Street Journal. Dow Jones & Company Inc. p. C3. ISSN 0099-9660. Retrieved September 23, 2013.

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