Steven A. Cohen
Steven A. Cohen
|Born||June 11, 1956|
Great Neck, New York, U.S.
|Residence||Greenwich, Connecticut, U.S.|
|Alma mater||The Wharton School|
|Occupation||Investor, hedge fund manager, and philanthropist|
|Known for||Founding and leading:|
S.A.C. Capital Advisors &
Point72 Asset Management
|Salary||US$700 million (2018)|
|Net worth||US$12.8 billion (April 2019)|
(m. 1979; div. 1990)
Alexandra Garcia (m. 1992)
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. Time Magazine ranked him 94th in 2007 on its annual Time 100 list of most influential people. In 2011 he was included in the 50 Most Influential ranking of Bloomberg Markets Magazine. As of April 2019 he has an estimated net worth of US$12.8 billion.
Early life and education
Cohen grew up in a Jewish family  in Great Neck, New York, where his father was a dress manufacturer in Manhattan's garment district, and his mother was a piano teacher. 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." 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. While in school, a friend helped him open a brokerage account with $1,000 of his tuition money.
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.. 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. And he eventually managed a $75 million portfolio and six traders. Cohen was running his own trading group at Gruntal & Co. by 1984, and continued running it until he started his own company, SAC.
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.
In 2003 the New York Times described "SAC is one of the biggest hedge funds and is known for frequent and rapid trading." 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.
As of 2009, the firm managed $14 billion in equity.
2012 - 2016 SEC Investigation - On November 20, 2012, Cohen was implicated in an alleged insider trading scandal involving an ex-SAC manager, Mathew Martoma. 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. 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. Cohen settled his civil case with regulators in January 2016; the agreement with the SEC prohibited Cohen from managing outside money until 2018.
S.A.C. Capital Advisors "pleaded guilty to insider trading charges in 2013 and paid $1.8bn in penalties" and was required it to stop handling investments for outsiders. Cohen "escaped criminal indictment himself despite being the living, breathing heart of SAC Capital," but Dr. Sidney Gilman, the star prosecution witness against Martoma, testified that FBI agents told him Cohen was the investigation's ultimate target. He was featured in a January 2017 New Yorker article, titled "When The Feds Went After The Hedge-Fund Legend Steven A. Cohen".
Wealth & investments
In 2016, Forbes Magazine estimated Cohen's fortune at $13 billion, ranking him the 30th richest person in the United States. Cohen was dubbed "the hedge fund king" in a 2006 Wall Street Journal article. His 2005 compensation was reportedly $1 billion, considerably higher than his 2001 compensation ($428 million). In February 2015, Forbes listed Cohen as the highest-earning hedge fund manager in 2014 In December 2013, Cohen's New York penthouse in the Bloomberg Tower was listed for sale for $98 million. Cohen is one of the minority owners of the New York Mets, and holds a four percent stake in the baseball team.
Steven & Alexandra Cohen Foundation
Cohen and his wife Alexandra have donated to projects involved in health, education, arts and culture, and New York community. 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. Cohen has committed $30 million toward research to accelerate development of biomarker tests and drug-based therapies for the conditions.
Cohen Veterans Network
In April 2016, Cohen announced the creation and a commitment of $275 million to the Cohen Veterans Network. The CVN's goal is to establish mental health centers for veterans and their families throughout the U.S.. The goal is the establishment of 20-25 centers by 2020.
Cohen Veterans Bioscience
2000 Begins collecting Impressionists - The New York Times reported that Cohen began "serious collecting" art in 2000. Cohen's tastes and collection began with Impressionist painters acquiring works by Manet and Monet after which he moved quickly into contemporary art.
Begins Contemporary art collecting While he has collected works from important emerging artists such as Adam Pendleton, he is most famous for collecting 'trophy' art—signature works by famous artists—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.
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 until early November 2012, when Cohen finally acquired the painting for $150 million.
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. Also in 2015, he reportedly bought the world's most expensive sculpture, Alberto Giacometti's Man Pointing. A 2015 estimate valued his art collection at about $1 billion. 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.
Legacy and awards
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.
Family - Cohen has been married twice. 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. They had two children together. They divorced in 1990. In 1992, he married Alexandra Garcia, a working single mom of Puerto Rican descent who also grew up in Washington Heights. They have four children together. 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).
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. 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.
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- Steven Cohen Latest Portfolio
- Steven Cohen Accused of Failing to Prevent Insider Trading
- Focus on Art collection - "A New Prince of Wall Street Buys Up Art" – New York Times 2005 article profiling Cohen's art collection
- Steven & Alexandra Cohen Foundation - Official Website