Anyone ever heard of Steven Cohen????

The article, http://www.backtrackreports.com/Steve Cohen.html states that, "The firm's credo, says a former SAC trader, is to "try to get the information before anyone else." The torrent of commissions wins Cohen the clout that often makes him privy to trading and analyst information ahead of rivals. Says one analyst: "I call Stevie personally when I have any insight or news tidbit on a company. I know he'll put the info to use and actually trade off it." Cohen expects to get the first call when an analyst upgrades or downgrades a stock, and if he doesn't, offenders have been known to get a tongue-lashing from SAC traders."

Now, isn't that just a bit illegal?
 
Quote from Maharaja:


Now, isn't that just a bit illegal?
More...

Someone has to get the first call don't they? Why not the guy who pays the biggest commissions? Who would you call?

OldTrader
 
Might be a surprise to many but in the hedgefund business, getting the information first is how many play the game. It is not get the information before its diseminated, its be the first one to get it when it is.......

They pay top dollar for information, have a contact list that is worth millions alone. Work one on one with analyst...in fact at the hedgefund im speaking off, each trader is given a sector and they are given anaylst maby a few that cover that sector. They can pick up the phone at anytime to speak to the anaylst, in fact the anaylst will call them right when the news is being released.

For those of you who thought hedgefunds trade on Technicals and other "daytrading" strageties.......most do not touch that stuff.

Information, information information;
 
Doesnt seem very skillful does it? :D

peace

axeman

Quote from ertrader1:

Might be a surprise to many but in the hedgefund business, getting the information first is how many play the game. It is not get the information before its diseminated, its be the first one to get it when it is.......

They pay top dollar for information, have a contact list that is worth millions alone. Work one on one with analyst...in fact at the hedgefund im speaking off, each trader is given a sector and they are given anaylst maby a few that cover that sector. They can pick up the phone at anytime to speak to the anaylst, in fact the anaylst will call them right when the news is being released.

For those of you who thought hedgefunds trade on Technicals and other "daytrading" strageties.......most do not touch that stuff.

Information, information information;
More...
 
Quote from axeman:

Doesnt seem very skillful does it? :D

peace

axeman
More...

Nope all about the big dollar.

I think it's pretty obvious that the first calls are borderline inside information. I'm sure Steve has "spies" and "agents" waiting for info and "researching".

Hmm the new Gordon Gekko? Sounds like a matter of time before this guy gets handcuffed by the FBI. Once you get into the game that far, there is no getting out.
 
Quote from ertrader1:


For those of you who thought hedgefunds trade on Technicals and other "daytrading" strageties.......most do not touch that stuff.

Information, information information;
More...

you mean, they didn't pick up a copy of David Nassar's book and put it to good use???

they don't trade opening orders? pairs? moving averages?

...could it be that everything john q. public trader reads about "trading" is complete bullshit??? :D


...and how is it possible that a fund with $4billion can do 3% of big board volume in one day? LMAO!
 
Quote from ertrader1:



For those of you who thought hedgefunds trade on Technicals and other "daytrading" strageties.......most do not touch that stuff.

Information, information information;
More...
You work hard? I bet you stayed up all night analyzing the chart of that dogshit stock. Where did that get you? I got a hundred brokers analyzing charts. Tell me something I don't already know.

The most valuable commodity I know of is information. John Q Public is throwing darts at a board. I don't throw darts. I bet on sure things.

-Gordon Gekko- real estate and stock speculator
 
Quote from Mecro:



I think it's pretty obvious that the first calls are borderline inside information.
More...

This statement is not true.

We're talking about an analyst here....not an "insider". Passing on an analyst view of a company would not be "insider" information. By the way, this one has been tested in court...ie the Ray Dirks case.

And in the unlikely event that an analyst possessed insider information it would be "insider information" whether it be the first call, or the second, or the third.

At this time there is no law at all against choosing which clients to call first with analyst information.

Finally, there are large numbers of people who even if they got the "first call", would not know what to do with it. Today for instance, semiconductors were downgraded. If you got the "first call" on that information what would you have done?:D The correct answer is "buy". Even if you get information first, you still have to decide what the "crowd" will do with the information. And there are times when this may not be clear. Alot of the time it depends on whether traders are long or short as to how the stock will respond. So using information takes some talent, even if you're getting the first call.

OldTrader
 
Quote from OldTrader:

So using information takes some talent, even if you're getting the first call.

OldTrader
More...

Using information takes LESS talent. Everyone can analyze charts and economic data, but only these wall st "thugs" get information ahead of time which gives them an edge. A huge edge. I still have respect for the guy, he started out just like any one else but who knows how much of his REAL talent he employs now to make those crazy yearly returns...
 
You must log in or register to reply here.
Back
Top