Is Steve Cohen Back To His Criminal Ways

Tyler Durden's picture

Over five years ago, months before most had heard of "expert networks", soon to be the fixture in the biggest FBI/DOJ/SEC crackdown against hedge fund insider trading in history, and years before it would become clear to everyone that the now defunct SAC Capital was nothing but a fund making billions by trading on inside information, we quietly exposed just how it was that Steve Cohen's hedge fund would almost as if by magic, always buy (or short) biotech companies, just ahead of successful (or not) Phase 1, 2 or 3 studies.

We did this all the way back in November 2010, when we looked at SAC's trades in three specific biotech names, CYBX, ITMN and MYGN, and asked three very specific questions:

  • Did SAC short CYBX in the days immediately preceding the adverse CYBX statement from August 12, 2004. And did it subsequently go long ahead of the favorable 8K from February 3, 2005. If so, what was the investment thesis/catalyst for such decision. Did SAC consult with an expert network or an outside consultant on any of the trades?
  • Did SAC go long ITMN in the days immediately preceding the favorable ITMN statement from March 9, 2010. And did it subsequently sell all of its holdings in advance of the adverse news from May 4, 2010. If so, what was the investment thesis/catalyst for such decision. Did SAC consult with an expert network or an outside consultant on any of the trades?
  • Did SAC sell its 700,000 shares in advance of the adverse MYGN news release from May 4, 2010. And did it subsequently sell all of its holdings in advance of the adverse news from May 5, 2010. If so, what was the investment thesis/catalyst for such a decision. Did SAC consult with an expert network or an outside consultant on any of the trades? Furthermore, what catalyzed the decision to reenter the stock.

Today, more than five years later, we have a follow up question for Mr. Steve Cohen, and his "new" family office, Point72, regarding the firm's most recent investment in microcap biotech company Celator, which as of Tuesday is not so micro anymore:

Why did SAC go long Celator Pharmaceuticals (CPXX) in the days immediately preceding the company's March 14 favorable Phase 3 trial result of Vyxeos for Acute Myeloid Leukemia? What was the investment thesis/catalyst for this decision. Did SAC consult with an expert network, an outside consultant or company insider when deciding to put on the trade?

We ask this because yesterday afternoon, Point72 and its New York trading proxy EverPoint filed a 13G dislosing that as of the close of business of March 14, Steve Cohen had become the beneficial owner of an 8.3% stake in CPXX, amounting to 2,855,000 shares. As is traditional with 13G filings, it means Cohen acquired his threshold stake in one (or all) of the 10 calendar days preceding March 14 - the filing does not give the breakdown of how much, and on what days he did so, at a price of around $2/share.

What makes Cohen's acquisition particularly questionable, is that also on March 14, Celator issued a press release reporting a successful Phase 3 trial for an AML drug, Vyxeos:

Celator Pharmaceuticals, Inc. (Nasdaq: CPXX) today announced positive results from the Phase 3 trial of VYXEOS™ (cytarabine: daunorubicin) Liposome for Injection (also known as CPX-351) in patients with high-risk (secondary) acute myeloid leukemia (AML) compared to the standard of care regimen of cytarabine and daunorubicin known as 7+3. The trial met its primary endpoint demonstrating a statistically significant improvement in overall survival.

The result was a spectacular move in the stock following the announcement, one which sent it over 400% higher in the afterhours session, hitting a price of $10 earlier today before closing at $9.38, and netting a profit to Steve Cohen of approximately $20 million assuming he acquired the stake when the stock was trading at $2/share over the past ten days, spending approximately $6 million to build up his reportable position. To be sure, we don't know his cost basis, something many other 13G filings disclose, and as such we can only speculate, as well as wonder why Cohen decided not to provide this information.

 

But more to the point, and as noted above, we were hoping that Mr. Cohen, who surely would not want his name dragged back into another insider trading scandal as he prepares to move back to managing other people's money which he will be allowed to do again in 2018, now that the SEC has granted him a reprieve from the isolation of a family office, will provide us with the required information, the same information which several years ago was material enough for the Feds to unleash the most historic crackdown on a legendary hedge fund in modern capital market history.

Because the alternative is all too obvious: Steve Cohen is back to his "neither admit nor deny criminal guilt" days of investing in biotech stocks on "hot tips" acquired by insiders through "expert networks" or otherwise. Then again, we doubt even he would be so bold as to file a 13G on the same day a company has soared by 400% on a successful Phase 3 trial.

Or maybe he would, and if so did Steve merely suffer a relapse to his old, more "criminal" days we wonder?

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Cognitive Dissonance's picture

Thieves of a feather flock together. Or something like that.

<And the Wall Street toilet is certainly full of thieves.>

goldmiddlefingre's picture

A platry $20,000,000 profit. Isn't the fine Three times the gain? Hmmm $60,000,000. I claim whistleblower status for 25% Bob.

jcaz's picture

Why would he stop, after the slap on the wrist last time?  Oh darn, forced to trade just my own money-  bummer......

KesselRunin12Parsecs's picture

How could someone named 'Cohen' NOT be perpetually engaged in 'criminal ways'?

cheeseheader's picture

Hit, K, hit!  Logged in just to up vote you here, and forever more on this thread, bro.  Don't forget to come up for air now and then tho.

COSMOS's picture

Cant keep a good schmuck down.

Goy pension funds beware....

COSMOS's picture

http://i.stack.imgur.com/PPhcg.jpg

Not just Cohen my friends, not just him.  The tribe always dominates locally and globally.

COSMOS's picture

https://a.disquscdn.com/uploads/mediaembed/images/3362/5459/original.jpg

Another nice graphic and the guy in the pic looks like Cohen hahahah

Colonel Klink's picture

But they're only 2-3% of the population.  How can there be a sea of red?  /Sarc

Lucky Leprachaun's picture

They'll be one short of a majority when Obama's nomination gets approved. Just ike Germany in the 1930's

algol_dog's picture

Your leaving out Hillary's campaign contribution in your math. 

HectorCamachoTrump's picture

Cohen means priest in yiddish/modern hebrew.

COSMOS's picture

It also means...Lots of swindled destitute GOYS

nmewn's picture

Oh! He's an art lover! ;-)

Normalcy Bias's picture

Cohen? What is with this endless series of latino financial industry criminals?!

Ms No's picture

In 2015 his net worth was estimated to be 12 billion and he still can't stop playing criminal theft games.  It's amazing. 

KesselRunin12Parsecs's picture

It's a genetic disease... It's like the jew version of sickle cell anemia

nmewn's picture

Its the NE part of the country, theres a lot of inbreeding going on ;-)

Ward cleaver's picture

They can't help it, $$$$$$$ is their god

Raul44's picture

Latino?! He is Jew for fuck`s sake.

algol_dog's picture
Look Around the Poker Table; If You Can’t See the Sucker, You’re It
Government needs you to pay taxes's picture

No, no.  That was just a lucky guess.

V for ...'s picture

Recidivism is more likely than rehabilitation. His name is Steve Cohen. He and his tribe are born criminally insane. The Talmud tells them they are special. Everyone else is inferior and owes them everything.

Jesus threw the moneychangers out of the temple. Why? Because they are crooks, criminally insane, as per anyone with an AshkeNAZI name unless they prove otherwise by actions, not their typically lying words, as per their chutzpah; lie to the goy.

JedClampIt's picture

Being a douchebag is not limited by race, religion or ethnicity.

V - you are proof of that

COSMOS's picture

What all of a sudden he is a bad guy for shining the spotlight on the schmucks.

MASTER OF UNIVERSE's picture

Cohen has been caught with his pants down once again. Frankly, I think the Tyler(s) just extended his reinstatement date to play with OPM well past 2018.

 

:)

onmail1's picture

criminal ways?

well , if u are insanely rich

the establishment & the law

are yor cronies

there is no law for the uber rich

the only law for these is

the inferno


gregga777's picture

The only way that these hedge fund managers know how to make money are through criminal activity. Most of them are smart enough to bribe the Feral government politicians, regulators and law enforcement for protection. Of course Mr. Steve Cogen is a criminal and that's the only way that he knows how to make money.

Colonel Klink's picture

You can never keep a crooked Jew down.