Steve Cohen steps back from investing his client’s money has come as a surprise to many.
There is the wealthy, and then there is the ultra-wealthy.
Steve Cohen is the latter. He has an estimated net worth of 13 billion USD (2017). He is number 13 on the Forbes 400 list, the 72nd richest person on the planet.
Cohen’s original claim to fame was a 30% annualized return in his previous firm then called SAC Capital Advisors.
“He has an estimated net worth of 13 billion USD (2017). He is number 13 on the Forbes 400 list, the 72nd richest person on the planet”
WEALTH TRAINING COMPANY
The 68-year-old billionaire and founder of Point72 Asset, Steve Cohen, inspired the show Billions, where an entire generation of information arbitrage investors has stepped away from daily trading duties at Point72 Asset, which he founded in 2014.
Steve Cohen, the fund’s co-CIO, and Harry Schwefel will no longer invest their clients’ capital.
“Cohen will be taking a break from trading his book, and he feels he can have a greater impact by focusing on running the firm, driving strategic initiatives, and mentoring and coaching the next generation of talent,” said a spokesperson for Point72 in an emailed statement.
Steve Cohen steps back from investing his client’s money, spanning a career which has seen its fair share of ebbs and flows
On November 20, 2012, Cohen was implicated in an alleged insider trading scandal involving an ex-SAC manager, Mathew Martoma, later convicted in 2014 in what is known as the most profitable insider trading conspiracy in history.
“Cohen will be taking a break from trading his book”
POINT72 SPOKESPERSON
The SEC took a civil lawsuit against Cohen for failing to supervise Martoma. In short, in 2016, the civil case was settled, where the agreement prohibits Cohen from managing outside money until 2018.
“The way I understand the rules on trading inside information. It is very vague,” said Steve Cohen.
After Cohen’s guilty plea, Cohen changed the name of his firm to Point72, returned client capital and traded using his billions. In early 2018, he was back to managing money for outside investors who forgot about Cohen’s checkered past as they invested $12.8 billion in Point72 since 2020 and managed a record $35.2 billion as of July 1, showing that investors are still keen to back a hedge fund driven by teams of traders. Point72 gained about 10% this year through August and is considering returning profits to clients in 2025, Bloomberg has reported previously.
Steve Cohen then rebuilt his hedge fund Point72 Asset into a world’s top hedge fund with $35 billion in assets under management.
In November 2020, Steve Cohen completed his $2.4 billion purchase of the NY Mets.
Point72 gained about 10% this year through August and is considering returning profits to clients in 2025.
Steve Cohen steps back from investing, but it is a well-known fact that billionaires rarely retire, so as they say, watch this space.
