Billionaire Investor Steve Cohen Just Had His Worst Year Since the Financial Crisis

[SteveM]

I think Cohen's difficulties are basically widespread throughout the hedge fund industry as a whole today.

Technology has eliminated the information arbitrage that hedgies used to have access to ahead of the retail trader; even sites like Seeking Alpha have leveled the playing playing field; plus, the SEC has now made it illegal to have company CEOs on the hedge fund speed-dial.

 

[johnbennett103]

I worked for an engineering firm in Stamford in 2008, and we were doing work at SAC Capital, Steven Cohen's old firm. Our project manager was working at the firm when they lost 30% in one day. He said you could hear Cohen screaming from his office.

 

[dealmaker]

Steve Cohen
Billionaire Investor Steve Cohen Just Had His Worst Year Since the Financial Crisis
Jen Wieczner
Updated: 7:30 AM Pacific
Bloomberg, underperforming both the S&P 500, up 9.5% in 2016, as well as hedge funds in general, whichaveraged returnsof about 5.6% for the year. It was Cohen's worst year on record other than 2008, when he lost nearly 28%—the only year the billionaire trader has lost money, though he did outperform the broader market.

One thing Cohen currently has going for him is that he doesn't have to answer to anyone else to explain his subpar performance: Cohen is currently the only investor in Point72, having been barred from managing outside capitaluntil the beginning of 2018after his former hedge fund SAC Capital pleaded guilty to insider trading in 2013.

Still, in an exclusiveinterviewwithFortunein the fall, Cohen reiterated his desire to not only beat the market, but to be the best among money managers—despite the fact that he doesn't currently compete for business in that industry. "There may be firms out there that are happy being middle-of-the-pack and having modest returns, and maybe don’t work as hard as other people and are perfectly acceptable. That’s not me," he said. "If I’m going to be mediocre—if I’m going to be mediocre, I’m going to question whether I should stay in this business."

http://fortune.com/2017/01/18/billionaire-steve-cohen-point72/

Only 1%, poor Steve struggling without the insider info....No bonuses, I bet a lot of unhappy people there....

Jan 8, 2017
Helpful (8)

"Quantitative Strategist"
StarStarStarStarStar
Current Employee - Quantitative StrategistinNew York, NY
Doesn't Recommend
Negative Outlook
No opinion ofCEO
I have been working at Point72 full-time

Pros

Free snacks, great location. Flexible work hours. Offices in several countries

Cons

Everything else. Cubist is in disarray after bad 2015, and really bad 2016. Morale is in dumps and management hasn't done anything to boost the declining morale. I personally know several people who are out interviewing and plan to jump the ship.

As a part of image makeover after $1.8B SEC fine, management actively seek positive reviews from employees. I will take positive reviews for this company with a pinch…

"Hard but worth it."
StarStarStarStarStar
Current Employee - Associate DirectorinStamford, CT
Recommends
Neutral Outlook
No opinion ofCEO
I have been working at Point72 full-time (More than 5 years)

Pros

Smart people, good benefits, well known reputation.

Cons

Can be stressful, long hours in many areas, changing culture - not clear what it will be at the end.

Advice to Management

Culture is important, but don't forget about the return on investment.


https://www.glassdoor.com/Reviews/Point72-Reviews-E1032703.htm

https://www.glassdoor.com/Salary/Point72-Salaries-E1032703.htm

https://www.glassdoor.com/Overview/Working-at-Point72-EI_IE1032703.11,18.htm

https://www.point72.com/careers/cubist-systematic-strategies/

 

[lawrence-lugar]

I just watched/discovered this Youtube video today:

PBS Frontline 2014 To Catch a Trader (about Steve Cohen/SAC capital)

Good, deep stuff -- they should make a Hollywood movie about him; All finance plot movies end badly.
The only happy ending with money movies...are in romantic comedies/comedies.

 

[BigBrandy]

Great video. Thanks for posting

 

[dealmaker]

Both Jack D. Schwager and Tom DeMark said Stevie Cohen is the best trader they have seen.

 

[comagnum]

Got a link showing Jack Schwager said Cohen was his favorite? He was always very guarded to not ever pick out a favorite wizard when cornered in interviews on that.

"This is not a perfect game. I compile statistics on my traders. My best trader makes money only 63 percent of the time. Most traders make money only in the 50 to 55 percent range. That means you’re going to be wrong a lot. If that’s the case, you better make sure your losses are as small as they can be, and that your winners are bigger. – Steve Cohen"

 

[Handle123]

Always wondered,if you are a billionaire,why do you need all this crap.Grow potato!

Why does Buffet continue to play the game? You spend far amount of your life getting good, and you going to quit? And do what? Buffet plays at Bridge tournaments, not like playing that non stop.

 

[johnbennett103]

I thought Steve Cohen was banned from trading himself after the insider trading cases a few years back. Its his firm members and not his trading. I know that he was considered the greatest emini S&P tape reader of all time, and used to generate billions with his trading. Times have obviously changed.

 

[lovethetrade]

I know that he was considered the greatest emini S&P tape reader of all time, and used to generate billions with his trading. Times have obviously changed.

Where's the evidence that he was so great at all these other things besides managing a fund that was exposed for being heavily involved in insider trading.