A trading magnate also referred to as the Hedge Fund King and the Prince of Wall Street by the Wall Street Journal and New York Times respectively.

He is the founder of SAC Capital Advisors, now Point72 Asset Management. Steve Cohen was born on June 11, in Long Island, New York. After years of legal battles involving insider trading allegations, the name of the fund was changed to Point72 Asset Management in SAC Capital originally employed a rapid investment trading process where stocks were traded several times over the course of a year and held only for a short time.

This high volume statistics accounted for up to a minimum of 20 million shares traded per day. This is in contrast to value investors who buy and hold stocks in their portfolios for years. As Cohen is a market mover and shaker, his copycats in the financial market may proceed to take a similar position by unloading the security which would drive down the price.

Steve Cohen Is Trying to Teach Computers to Think Like Top Traders - Bloomberg

By doing the reverse desk and creating an inverse transaction, Cohen is able to buy back the block of shares plus more at the lower traded price. Steve Cohen has also been said to squeeze short sellers out of their short positions by buying large blocks of the shorted shares over time.

This forces up the price of shares and sends short sellers scrambling to cover their positions which may further drive up the price. At this point, Cohen would sell his position for a handsome profit. Hedge fund manager Whitney Tilson was said to have been squeezed out of his short position on Netflix after Cohen took a long position on the stock. Cohen has garnered huge returns from the huge risks he has taken in his trades.

He credited poker to be his biggest determinant in his risk taking training. Three weeks later, AstraZeneca made a deal to buy Ardea. Both times, as a result of positive operational changes made within the supermarket chain, the stock price soared.

Global Crossing and Barr Pharmaceuticals are two firms Cohen has also reaped huge gains from. As much as Steve Cohen is seen mostly as a successful trader, he has not been spared the surety of losses that almost every investor and trader has experienced.

SAC Capital lost millions when its long bet on ImClone Systems was unsuccessful. This was the famous corporate activity that sent Martha Stewart to jail for insider trading.

Billionaire Steve Cohen: Inside His Hedge Fund Comeback

After news came out in early that its hepatitis C drug had side effects on some patients, the stock plunged causing SAC a substantial loss. Cohen made up for his huge loss by shorting the stocks after liquidating his unprofitable long positions.

In addition to stocks trading, Cohen is also an avid arts collector. In , the hedge fund firm pleaded guilty to fostering illegal insider trading of its employees and reaping profits of hundreds of millions of dollars in the process. Cohen is a big philanthropist. Through the Steven A. In , Steve Cohen's SAC Capital International was the most profitable hedge fund on Wall Street. Dictionary Term Of The Day. A measure of what it costs an investment company to operate a mutual fund.

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Former SAC Trader on What Steve Cohen Bio ‘Black Edge’ Doesn’t Explore | Observer

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