Steve Cohen has retired from the trading floor.
While the billionaire hedge fund founder will remain co-chief investment officer of Point72 Asset Management alongside Harry Schwefel, he’ll not invest clients’ capital. Cohen, 68, will as an alternative deal with driving the firm’s growth and nurturing and developing talent, the corporate said in an emailed statement.
Cohen has been one in all the dominant forces within the industry for greater than three a long time and rebuilt his hedge fund into one in all the most important on this planet after a costly insider trading scandal. Even as he grew his company into one with greater than 185 trading teams and moved on to other interests, including buying the New York Mets in 2020, he kept a small book that he traded commonly.
“It’s a tremendous value to have Steve as an influential mentor to our investment professionals,” Point72 spokeswoman Tiffany Galvin-Cohen said within the statement. “He’s been doing this for 40 years and has seen a lot. That’s what gives him the most satisfaction these days – helping people succeed and seeing that make a difference – and where he feels he can add the most value.”
Because the teams pursue a big selection of strategies across long/short, macro and quant investing, no single trader, including Cohen, is critical to Point72’s ability to generate profits. Still, his retirement from trading is a litmus test to find out whether multi-strategy firms can still succeed after their legendary founders leave.
Cohen has taken trading pauses before and his latest decision could change that.
His firm has raised greater than $20 billion since 2018 and managed a record $35.2 billion as of July 1, showing that investors are still thinking about backing a hedge fund run by teams of traders. Point72 gained about 10 percent this 12 months through August and is considering distributing profits to clients in 2025, Bloomberg previously reported.
“The company is much bigger than me today, which is actually very liberating,” Cohen said in May 2021 in an interview with Jawad Mian, creator of Scattered reflections.
He had previously risen to fame with 30 percent annual returns on the helm of a firm called SAC Capital Advisors, which paid a record $1.8 billion fantastic to settle a seven-year insider trading investigation. SAC pleaded guilty in 2013 to creating lots of of thousands and thousands of dollars in illegal profits and enabling a culture of criminality that rewarded brazen insider trading.
Cohen, who has all the time denied any wrongdoing, has never been charged or sued, despite agreeing not to administer third-party money for 2 years.
After the firm admitted guilt, Cohen modified the name to Point72, returned client capital and traded his own assets. By early 2018, he was back to managing money for out of doors investors.
Cohen has been thinking about the stock market since he was 13 years old. He began following the stock prices within the New York Post, which his father, a clothing manufacturer, brought home every evening within the suburb of Great Neck, New York.
Cohen left Long Island and attended the Wharton School on the University of Pennsylvania, where he often skipped classes to observe stock prices at a neighborhood brokerage. He taught himself to change into a master “tape reader,” capable of predict the direction of a stock by watching every price fluctuation and the quantity of shares traded.
After graduating with a level in economics in 1977, Cohen joined the New York brokerage firm Gruntal. He got here on board as a proprietary trader, buying and selling stocks with Gruntal’s money. He was successful, becoming the firm’s chief proprietary trader in 1985, a position he held until 1992, when he quit to start out SAC.
According to the Bloomberg Billionaires Index, Cohen has a net value of $14.7 billion, making him one in all the 100 richest Americans.
(Updated with fundraising within the seventh paragraph, profession entry within the twelfth.)
