Steven A. Cohen is an American billionaire investor, hedge fund manager, and philanthropist. He is best known as the founder of SAC Capital Advisors, a highly successful hedge fund, and later, Point72 Asset Management, a global investment management firm. Cohen is considered one of the most successful and influential investors in the hedge fund industry.
Here are some key aspects of Steven A. Cohen's life and career in detail:
- Early life and education: Steven A. Cohen was born on June 11, 1956, in Great Neck, New York. He graduated from the Wharton School of the University of Pennsylvania in 1978 with a Bachelor of Science in Economics, majoring in finance.
- Early career: After graduating from Wharton, Cohen began his career as a junior trader in the options arbitrage department at Gruntal & Co., a boutique investment bank. He quickly gained a reputation as a highly skilled trader, and by the late 1980s, he was managing a group of traders and a multimillion-dollar portfolio at Gruntal.
- SAC Capital Advisors: In 1992, Cohen founded SAC Capital Advisors with $25 million of his own money. The firm initially focused on trading stocks and eventually evolved into a multi-strategy hedge fund, employing long/short equity, global macro, and other strategies. SAC Capital became one of the most successful hedge funds in the industry, known for its high annual returns and aggressive trading style.
- Insider trading scandal and closure of SAC Capital: In 2013, SAC Capital Advisors pled guilty to insider trading charges and agreed to pay a record $1.8 billion fine. The firm was required to return outside capital to investors and cease operations as a hedge fund. Cohen was not personally charged, but he was barred from managing external money for two years by the SEC.
- Point72 Asset Management: In 2014, Cohen founded Point72 Asset Management, initially as a family office managing his personal wealth. The firm focused on long/short equity and macro strategies, utilizing fundamental research and quantitative analysis. After the SEC ban expired in 2018, Point72 began accepting outside capital and currently manages assets on behalf of institutional investors and high-net-worth individuals.
- Philanthropy: Steven A. Cohen is an active philanthropist and supports various causes through the Steven & Alexandra Cohen Foundation, which he founded with his wife, Alexandra. The foundation focuses on areas such as children's health, education, veteran support, and the arts. In 2016, the Cohens pledged $275 million to create the Cohen Veterans Network, which provides mental health services to post-9/11 veterans and their families.
- Personal life: Steven Cohen is married to Alexandra Cohen, and they have seven children. Cohen is an avid art collector, and his collection is considered one of the most valuable private art collections globally, featuring works by artists such as Pablo Picasso, Andy Warhol, and Jeff Koons.
In summary, Steven A. Cohen is an American billionaire investor, hedge fund manager, and philanthropist known for founding SAC Capital Advisors and Point72 Asset Management. He is considered one of the most successful and influential investors in the hedge fund industry. Cohen is also an active philanthropist, supporting various causes through the Steven & Alexandra Cohen Foundation.