You'd think pleading guilty to insider trading, paying a $1.2 billion fine, and being barred from managing outside capital would clear the decks. But if you're SAC Capital, you'd be wrong. The Justice Dept is proceeding in its investigation in the hopes of even more charges - charges which Steve Cohen and company have no immunity against. To wit, an unnamed witness with firsthand knowledge of insider trading that may involve Cohen himself has rolled on his former employer. [quote]Indeed, according to The New York Times, prosecutors and the Federal Bureau of Investigation have won another
05 Nov 2013
*"The Michael Jordan of Hedge Fund Managers". 25% net return to investors annually since inception w/an average Sharpe Ratio of 2.5. "This man has returned 3x the returns of Warren Buffet with a third of the risk"
23 May 2013
The Financial Times has recently released their top 10 Hedge Fund manager list, and no surprise here, it's pretty much a cross section of the funds found on this recent thread. (Which I just found out also has a link to the article… Moving on.) Net gains for investors since inception was the measure used to rank the managers and a lot of surprising facts about their returns were given, like did you know Eddie Lampert's ESL has earned more than British Airways over the same period?
15 Sep 2010
Has anyone read "The Black Edge" by Sheelah Kolhatkar yet? Sounds like an interesting book judging from the below. Link to FT.com article [quote]A lot of people do not trust Wall Street. They regard it as a moneymaking machine for those who work there, which has little interest in practice in its stated aim of channelling capital into businesses and helping them to grow for the broader benefit of society. For such sceptics, Steven Cohen is Exhibit A. Cohen's former hedge fund, SAC Capital, came to dominate share trading on Wall
08 Feb 2017
It's been a rough couple of weeks for Stevie Cohen and his crew, and the situation is growing more "fluid" with each passing day. I kinda kept one eye on it all weekend after the somewhat cryptic announcement on Friday that SAC would no longer be "fully" cooperating with the government's investigation into insider trading at the fund. Then came the announcement that Cohen himself had been subpoenaed, and the previous announcement was interpreted to mean that he planned to take the Fifth rather than testify before a grand jury. Now the rumor is that Cohen may be cutting a deal with the feds
21 May 2013
As if hearing Edmundo's question of who is rich, Forbes magazine released their list of the 400 richest Americans. Topping the list as usual is Microsoft billionaire Bill Gates, with Bershire's Warren Buffet in 2nd and Oracle's Larry Ellison in 3rd. So where are the bankers? Of the top 200, 50 of them are in (or were) in finance, with hedge funders and investors topping the list over the PE guys. Here's a quick top 20 of the group: #2 Warren Buffet - $45 billion - Berkshire Hathaway #14 George Soros - $14.2 billion - Soros Fund Management #20 John Paulson - $12.4 billion> - Paulson & Co. #22
23 Sep 2010
The ongoing saga at SAC continues with the Justice Department calling Steve Cohen's bluff, and Cohen calling theirs right back at them. Cohen's attorney informed prosecutors that he would indeed invoke his Fifth Amendment right against self-incrimination if called before a Grand Jury in the SAC insider trading investigation. With the deadline to file charges against SAC and/or Cohen fast approaching, the investigation seems to be heading into witch hunt territory. Last week the Justice Department went so far as to say they may charge Cohen even if he didn't know insider trading was going on at
02 Jul 2013
Amidst the brouhaha of the insider trading investigation, the SEC filed an action on Friday seeking a lifetime ban against SAC Capital founder Steve Cohen. If successful, Cohen would never be allowed to touch investor funds again. In a somewhat ironic twist, the basis of the SEC action is Cohen's "failure to supervise" SAC employees. [quote]The SEC alleged the 57-year-old financier ignored signs of illicit trading by star staffers and instead traded personally on their advice. The agency alleged the trading resulted in hundreds of millions of dollars in profits and avoided losses for Mr. Cohen
22 Jul 2013
First Chicago, now London. SAC Capital has announced it will close its London office by year-end as a result of the ongoing insider trading investigation. SAC President Tom Conheeney delivered the news to the London employees in person, which was a class act we don't often see in this business anymore (nowadays you just get an email). For those who think the proposed settlement and rumored billion-dollar fine are no big deal, you've got another think coming: [quote]"As our negotiations with the government have unfolded, it has become clear to us that the outcome the government is demanding is
24 Oct 2013
Would you buy the New York Mets? In the case of SAC Capital's Steve Cohen the answer is a resounding YES. I am not so sure that this is a smart play. Not just for Cohen, but for any investor. Today I would like to hear thoughts on the potential purchase from the analyst's perspective. I guess the better question would be... do you guys see baseball teams as a good investment overall? With the sport steadily losing ground as far as popularity and revenue is baseball the cash cow it once was? It seems that a ton of teams are having a hard time making money and even the country's most prized media market has felt the pain.
09 May 2011