SEC bans Steve Cohen from supervising hedge funds

[nitro]

"Regulators on Friday banned Point72 Asset Management's Steven Cohen from supervising hedge funds until 2018.

The deal with the Securities and Exchange Commission settles allegations that Cohen failed to effectively monitor a former portfolio manager who engaged in insider trading. Cohen has neither admitted guilt nor denied the charges, which stem from when the firm was known as SAC Capital Advisors.

This story is developing. Please check back for further updates."

http://www.cnbc.com/2016/01/08/sec-bans-steve-cohen-from-supervising-hedge-funds.html

 

[dealmaker]

People with money can evade justice...

 

[marketsurfer]

Thanks for this, Nitro. Good intel.

surf

 

[marketsurfer]

People with money can evade justice...

Guys like Bernie Madoff?

 

[Trader13]

This is a good lesson when prominent high-profile traders like Steve Cohen (and his team) are caught doing insider trading. Cohen is very wealthy, he can afford the BEST infrastructure and trading talent that money can buy, and yet he still resorts to insider trading. Why? Because there is no secret pattern or indicator that the "smart money" has. So anyone spinning their tails looking for the secret sauce should take notice. Any doubts ... search on hedge fund trader Raj Rajaratnam for more confirmation. I suspect this happens all the time and Cohen was just unlucky as he got caught.

 

[zdreg]

because there is no secret pattern or indicator that the "smart money" has

there is a law of large numbers whereby you cannot outperform the market because you have become the market. until you reach that point there are OUTLIER hedge fund managers who can outperform the market with a legal "secret sauce." Stevie cohen reached that point and instead of finding new markets to invest in or becoming an index investor became greedy and broke the law. other large hedge fund investors found new edges e.g. activist investors who can force changes on management...
george soros deals in currency markets where he can push governments around or take advantage when billions of assets are forced into distressed selling e.g. mf global.

 

[zdreg]

Cohen was just unlucky as he got caught.

there is a law of large numbers that applies here also. he was not unlucky. his seemingly huge success caught the attention of envious bureaucrats, with career advancement motives, looking for a way to bring his downfall.

 

[ajacobson]

Cohen Deal Opens Door to Managing Outside Money
Hedge-fund billionaire Steven A. Cohen settled a long-standing case with the SEC that opens the door for him to resume managing outside money—a remarkable turnaround for the Wall Street titan.


This is actually a victory for Steve.

 

[Chubbly]

Guys like Bernie Madoff?

Guys like Martin Shkreli?

 

[marketsurfer]

This is a good lesson when prominent high-profile traders like Steve Cohen (and his team) are caught doing insider trading. Cohen is very wealthy, he can afford the BEST infrastructure and trading talent that money can buy, and yet he still resorts to insider trading. Why? Because there is no secret pattern or indicator that the "smart money" has. So anyone spinning their tails looking for the secret sauce should take notice. Any doubts ... search on hedge fund trader Raj Rajaratnam for more confirmation. I suspect this happens all the time and Cohen was just unlucky as he got caught.

Great post and 100% true.