Posts Tagged ‘Steven Cohen’

Steven Cohen

Steven Cohen – famous trader, a successful billionaire financier, owner and founder of hedge fund SAC Capital Advisors, the asset manager of $ 12 billion. Cohen employs about 600 people. He lives with his large family in Greenwich and considers himself an ordinary guy. Given that the size of his fortune is estimated at 8.8 billion dollars, and magazine Wall Street Journal called him the king of hedge fund.
Steven Cohen was born in 1956 in Great Neck, in the state of New York, in a noisy and a large family. Interest in poker, he began to show in his youth, believing that this game can learn to take risks. He studied economics, in 1978 he was awarded a degree in Economics at the University of Pennsylvania Wharton School.
Stock markets began to wonder Cohen back in the days when he was a student. On the means by which it was necessary to pay for his studies at the university, Stephen opened the scoring in one of the brokerage firms. Suddenly investments were successful, and after a few transactions Cohen not only returned all invested funds, but also earned the amount which would have been enough to pay for the entire period of study at the university.
After graduating from university, the future famous investor started his career as a junior trader brokerage firm Gruntal & Co, trading in the stock market. There, he managed just a show – for the first time to bring the company’s profit in the amount of 8,000 dollars. Later successes become more significant – his company every speculator brought to 100 thousand dollars. After four years of operation the famous trader ran a group of employees, trading assets in the amount of $ 75 million.
Steven Cohen
It is known that the company Gruntal & Co Stephen worked until 1992, and then decided to create his own digging. So there was a hedge fund called SAC Capital Partners, which had invested more than $ 20 million earned in the firm Gruntal & Co. While it was very successful for the work, as hedge funds have had little in the stock market continued bullish trend.
Fund Cohen was able to attract 13 million investment, as Cohen was set relatively high percentage for the efficient management of assets, and this put a lot of third-party investors. Steve started working on Wall Street, in one of the small offices, but a year later earned a 17% per annum, has doubled assets, and after three years the amount of assets quadrupled.
1998 for Cohen and his company became a star – in accordance with the outcome of the year, the fund has earned nearly 50%, compared to competitors who earned just over 2%. A year later, the assets of the company rose to $ 1 billion and then everyone realized that fund some particularly lucrative. While Steven spent all his time in office, self-made ​​deal. The company, thus, continued to expand, Cohen has increased staff, revised the investment portfolio by adding a trading currency.
The following two years, the fund has brought investors a very good profit in excess of 60-70%. It then started to develop the market of hedge funds, they became more and more, there are companies that copied the style of all of the Fund Stephen. Then rumors began to emerge that the famous trader owns certain insider information to ensure that he is able to perform the transaction, significantly outperforming the market.
Steven Cohen
Next business funds were not so successful – assets increased significantly, but the profit was not so overwhelming. Due to the strong competition in the market, many funds were forced to close, but funds Cohen continued to work and show good profitability. In addition, Stephen has continued to open new funds.
Not all went as smoothly as it might seem. So, the fund SAC Capital and the investor have been involved in a scandal with insider information, have been inspected by law enforcement agencies the United States. Ex-fund manager has been charged by federal prosecutors in the insider trading. But Steven Cohen and fund charges did not show, so the scandal did not affect the operation and profitability of the company.
Despite the fact that Steven Cohen has a considerable number of experienced professional traders, but prefer to make their own deals. Thus, the share of transactions committed by them account for about 15% of the company’s profits. Cohen independently developed a program, with which he was able to keep track of stocks overvalued and undervalued by the market.
Steven always goes with the times to keep up – everything is constantly changing, requiring new approaches, methods and techniques. So, before Stephen did not hold trading positions for a long time, and now buys large blocks of shares, holding them longer.
Due to its enterprising and successful, extraordinary abilities, intelligence and hard work, Steven Cohen is known as the king of hedge funds and stands on one stage with such greats as George Soros and Julian Robertson Jr.. This success story proves once again that when a certain percentage of capacity, commitment and desire to be successful trading can be a great springboard for a profitable business.