The Untold Story of Connecticut's Hedge-Fund Magnate
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Chapter 1: Early Life and Ambitions
Steven Cohen's journey to wealth is a compelling tale of perseverance and talent. Though he did not come from a wealthy background, he understood the allure of money from an early age. His ambition to achieve financial success was evident, as he demonstrated an uncanny ability to assess risks and uncertainties.
During his formative years, he honed his skills playing poker, often earning more than his father. However, his aspirations extended beyond the poker table; he recognized that Wall Street offered even greater financial opportunities.
With an impressive net worth surpassing $16 billion, Cohen ranks as the 48th richest individual in the United States. He is a family man, married with seven children, residing in Greenwich, Connecticut.
Section 1.1: Who is Steven Cohen?
Steven Cohen is a prominent hedge fund manager and the owner of the New York Mets. Born on June 11, 1956, his father was employed in the garment sector while his mother taught piano. Growing up in a large family with six siblings, Cohen developed a keen interest in poker.
After graduating from the University of Pennsylvania in 1978 with a degree in economics, he was introduced to the world of finance through a friend who assisted him in opening his first brokerage account with $1,000.
Subsection 1.1.1: The Rise to Prominence
Cohen began his Wall Street career as a junior trader at Gruntal Co. His remarkable talent was evident from day one, when he made an $8,000 profit. His skills continued to flourish, eventually leading the firm to earn $100,000 daily while managing a $75 million portfolio with six traders under his guidance.
Motivated by his success, he launched his own company, S.A.C., in 1992, initially funded with $10 million of his own money alongside $10 million from outside investors. Known for his adeptness at rapid stock transactions, his firm grew to manage $14 billion in equity by 2009.
Section 1.2: Legal Challenges and Resilience
Cohen's journey has not been without its challenges. The Securities and Exchange Commission (S.E.C.) accused him of insider trading, suggesting he utilized a controversial "reverse desk" strategy to manipulate stock prices. In 2009, his ex-wife, Patricia, claimed he had defrauded her out of millions during their divorce, but a judge ruled in Cohen's favor, stating there was insufficient evidence to support her claims.
Despite these legal hurdles, Cohen adeptly navigated the complexities of Wall Street and governmental scrutiny. In 2012, Mathew Martoma, a former manager at S.A.C., faced insider trading charges, leading the S.E.C. to file a civil suit against Cohen for allegedly failing to supervise Martoma. Ultimately, Cohen settled this case in 2016, which resulted in a temporary ban from managing outside capital until 2018.
Chapter 2: New Ventures and Philanthropy
In 2014, following the closure of his hedge fund, Cohen established Point72 Asset Management. Then, in 2020, he made headlines by acquiring the New York Mets, taking on the roles of Chairman and CEO.
The Steven & Alexandra Cohen Foundation
Established in 2001, the Steven & Alexandra Cohen Foundation has made significant contributions to various causes, totaling over $741.7 million aimed at enhancing children's healthcare and education. In 2016, Cohen pledged an additional $275 million to support veterans and their families, alongside a $1 million donation to Donald Trump in 2017.