Steven A. Cohen is a hedge fund manager and the founder of Point72 Asset Management and S.A.C. Capital Advisors. S.A.C. Capital was established in 1992 and after the firm pleaded guilty to insider trading charges in 2013 (no charges against Steve Cohen himself), the firm returned outside capital and became Point72 Asset Management, a family investment office in Stamford, Connecticut.
Steve Cohen started his career as a junior trader in the options arbitrage department of Gruntal & Co. in 1978. He eventually ran his own trading group at Gruntal by 1984 and continued running it until he founded S.A.C. Capital in 1992.
Steve Cohen founded SAC Capital with $20 million of his own money and by 2014, its AUM was $14 billion. In line with Steve Cohen’s background, SAC was known for active trading but over time, evolved into a multi-manager long/short hedge fund platform with longer hold periods. WSJ reported that SAC’s trading accounted for 2% of all stock market activity in 2006. SAC Capital was under investigation by SEC for insider trading for many years. By 2013, eight former SAC employees were found guilty of insider trading including Matthew Martoma who was sentenced to 9 years in prison and ordered to forfeit $9.4 million. In November 2013, SAC Capital agreed to plead guilty to all counts of the indictment, stop managing funds for outsiders, and pay a $1.2B fine.
Steve Cohen was born in 1956 in Great Neck, New York and grew up in a middle class Jewish family. He received an economics degree from the Wharton School at the University of Pennsylvania in 1978, where he was in the Zeta Beta Tau fraternity. He serves on the Board of Trustees of Brown University and Robin Hood Foundation.
Steve Cohen was #31 on Forbes 400 in 2016 with an estimated net worth of $13 billion. His first marriage was in 1979 to Patricia Finke and they have two children together. They got divorced in 1990 and he re-married in 1992 to Alexandra Garcia. They have four children together. Steve Cohen is a prominent art collector with a collection which is said to be worth around $1 billion – his collection includes pieces by Monet, Picasso, Jeff Koons, Hirst, Jasper John, Andy Warhol, and others. Steve Cohen also has a 4% stake in New York Mets that he paid $20 million for. Steve Cohen owns a mansion in Greenwich, CT which has an ice skating rink that he bought for $14.8 million. He listed his Manhattan penthouse for sale in 2016 for $72 million. He owns two homes in East Hampton that he bought for $18 million and $60 million each and two apartments in West Village that he bought for $23.4 million and $38.8 million each. He also bought a mansion in Beverly Hills in 2015 for $32 million. It is said that Showtime series, “Billions”, is inspired by US Attorney Preet Bharara’s pursuit of criminal charges against Steve Cohen.