Steve Cohen Hoping To Raise $20 Billion For Re-Launch Of SAC Capital

Tyler Durden's picture

Steven Cohen is hoping to raise $20 billion for a new fund he plans to launch soon after his ban on managing outside money expires in January 2018, the Wall Street Journal reports.

If Cohen is successful, it would be the largest hedge-fund launch on record. The sum would exceed the $16 billion his former firm, SAC Capital, managed at its peak – before the Securities and Exchange Commission forced him to shut it down and accept a four-year ban from the industry. Though, as WSJ notes, most – if not all – of Cohen’s $11 billion family fortune would likely be rolled into his new fund.

Raising such a sum would be “a show of resilience for the Wall Street veteran after years of legal fights,” The WSJ said. Government investigators eventually convicted eight of his former employees of securities fraud, but Cohen himself escaped prosecution.

But even if Cohen succeeds in meeting his target raise, it’s difficult to imagine how he’ll replicate his past market-beating performance without relying on some of the same tactics that initially attracted the Feds’ attention.

If his family office's recent returns are any indication, his fund might not be able to manage anything more than treading water.

As WSJ reports: Mr. Cohen, 60, has been overseeing his $11 billion family fortune at Point72 Asset Management LP, a 1,000-employee operation in SAC’s former Stamford, Conn., offices where Mr. Cohen’s desk sits at the center of the trading floor. While Point72 has made money since becoming a family office, last year its overall investment performance was roughly flat, Mr. Cohen’s second-worst ever annual showing, people familiar with the matter said.

To that end, Cohen is planning something that would've been "unthinkable" at SAC: He's considering lowering his fees, which once totaled as much as 3% of assets and half of all profits. Cohen's success would be notable not just for him, but for the industry as a whole, which suffered tens of billions in outflows last year.

Last year, hedge fund investors pulled more than $70 billion, the industry’s highest annual outflow since the crisis.

Cohen's quest for outside capital has already lead him back to the high-society circuit.

As WSj reports, he appeared at a gala to benefit Lincoln Center in January. And during a visit to SALT last month, Cohen “hosted a private dinner for staff and industry executives and attended closed-door events with speakers and sponsors including onetime rivals like hedge-fund manager Daniel Loeb, people familiar with the matter said."

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limpinalien69's picture

Money (((worshipper))).

Harlequin001's picture

Because getting caught is just 'one of those things...'

Absolutely no shame whatsoever. The best thing you can do with Wall Street is fucking nuke it.

Then chemically clean it and flush it down the shitter.

USisCorrupt's picture


I'm still waiting to be paid on the Class Action Lawsuit from Elan.


The central planners's picture

Money managers around the world closing their positions and returning money to their clients and this clown is willing to open a fund?

NoDebt's picture

Is he a Jew?  Can he make money off of it?  If the answer is yes and yes, it's a go.

Do you really think he gives a shit if he can make money for his clients (now that he won't be getting insider information)?  No, he does not.  He cares about making money for himself.  Period.


The central planners's picture

If not he got to suck alot of joo for sure.

Juggernaut x2's picture

Like a pack of fucking jackals

GRDguy's picture

Fools and their money are quickly separated, once again.

Singelguy's picture

What I find interesting is that Cohen, along with Buffett and Singer ( and I suspect there are others we have not heard about yet ) are putting pools of capital together, LARGE pools of capital, which seems to suggest that the probability of a big crash is moving higher. I would take that as a warning to get the hell out of the market asap.

NoPension's picture

What would Bernie do?

LibertarianMenace's picture

Cohen, Loeb in other words the usual suspects. Geepers, perhaps his struggle to rainmake $20B on the society circuit means even the non-gentile money pumps are coughing up sand. $20B oh my what a chore!

Larry Dallas's picture

How does this guy spend his free time? He must have major ADD.

slobbermut's picture

This piece of criminal excrement should have received 15 years in prison...instead he gets a slap on the wrist and now will be back doing the same old same old; crime pays really well for the WS scum.

Magooo's picture

This Fuck Boy should be in JAIL


I wouldn't be unhappy to hear that he had terminal cancer at some point - in fact that would make my year

GoldenDonuts's picture

Imagine the returns if he and Madoff got together.  Free cash for all.

JailBanksters's picture

Yes we did commit securites fraud, but that was then and this is now,

so give me another 20 Billion