Michael Steinhardt

Michael H. Steinhardt
Michael H. Steinhardt
Born	December 7, 1940 (age 85); United States
Occupation(s)	Hedge fund manager, philanthropist, former antiquities collector
Known for	Founder of Steinhardt Partners, chairman of WisdomTree Investments, Jewish philanthropy
Notable work	Co-founder of Taglit-Birthright Israel, former owner interests in Miami Marlins and Los Angeles Dodgers

Michael H. Steinhardt (born December 7, 1940) is an American billionaire known for his work as a hedge fund manager, philanthropist, and former collector of antiquities. He established Steinhardt Partners in 1967 and led the firm until it ceased operations in 1995. After a hiatus, he resumed his leadership role in 2004 at WisdomTree Investments. In January 2014, Forbes Magazine recognized him as "Wall Street's greatest trader." As of October 2018, his net worth was estimated at $1.1 billion.

Early life

Steinhardt earned his degree from the Wharton School in 1960. His professional journey began at mutual fund Calvin Bullock and later at brokerage firm Loeb, Rhoades & Co., which eventually became part of Shearson Loeb Rhoades. His father, Sol Frank "Red" Steinhardt, had associations with the Genovese Crime Family and was also Steinhardt’s initial investment client, providing the capital that launched his investment career.

Early career

While working as an analyst at Loeb, Rhoades & Co., Steinhardt focused on monitoring conglomerates such as Automatic Sprinkler, City Investing, and the notable Gulf+Western (now integrated into Viacom and CBS).

Steinhardt Partners

In 1967, Steinhardt co-founded the hedge fund initially called Steinhardt, Fine, and Berkowitz—later renamed Steinhardt Partners—with partners William Salomon and Jack Nash.

Between 1967 and 1995, Steinhardt Partners achieved an annualized return of 24.5% after fees, nearly tripling the performance of the S&P 500 over that timeframe. The fund imposed a management fee of 1% alongside a "performance fee" starting at 15%, which later increased to 20% on yearly profits.

During the early 1990s, both Steinhardt and his firm were investigated for alleged manipulation in the short-term Treasury Note market. He personally covered 75% of a $70 million penalty paid in settlements with the U.S. Securities and Exchange Commission and Department of Justice. Despite these issues, the firm earned $600 million from Treasury holdings. In his book No Bull, Steinhardt refuted any misconduct but chose to settle to "move on."

The fund experienced a loss of approximately one-third of its value during the 1994 bond market crisis. After posting a 25% gain in 1995, Steinhardt decided to shut down the fund, expressing a wish to pursue more meaningful endeavors than simply "making rich people richer." By the end of that year, all capital was returned to limited partners. He later reentered investment management in 2004 as head of WisdomTree Investments, managing assets close to US$64 billion.

WisdomTree Investments

Steinhardt came out of retirement in 2004 to join Index Development Partners, Inc., now operating as WisdomTree Investments. He holds the position of chairman at WisdomTree, which focuses on dividend- and earnings-based index funds instead of traditional market capitalization-weighted funds. By July 2018, WisdomTree oversaw $41.2 billion in assets. Although its growth slowed during the 2007–2008 financial crisis due to significant exposure to financial stocks, its funds subsequently outperformed benchmarks and resumed both asset growth and stock price appreciation.

Wealth and philanthropy

As of October 2018, Forbes Magazine valued Steinhardt's fortune at approximately US$1.1 billion. The Steinhardt School of Culture, Education and Human Development at New York University bears his name following two separate donations of $10 million each. However, after allegations of sexual harassment surfaced in 2018 and a 2021 settlement concerning illicit antiquities, the NYU student government renewed efforts to have his name removed from the institution.

During the 1990s, Steinhardt purchased Steeple Jason Island and Grand Jason Island in the Falkland Islands, subsequently donating them to the Wildlife Conservation Society. He also contributed $425,000 toward establishing a research station named in honor of him and his wife. Beyond conservation, Steinhardt has held ownership interests in professional sports franchises such as the Miami Marlins and the Los Angeles Dodgers.

Steinhardt formerly chaired the Democratic Leadership Council and is a board member of the Foundation for Defense of Democracies, to which he gave $250,000 in 2002.

Jewish causes

Steinhardt serves as chairman of both The Steinhardt Foundation for Jewish Life and Taglit-Birthright Israel. He champions youth involvement in Jewish life through support for organizations including Ezra USA and RAJE, having donated more than $125 million to various Jewish initiatives. In 1999, together with Charles Bronfman, he co-founded Taglit-Birthright Israel, an organization offering complimentary 10-day trips to Israel for Jewish young adults aged 18 to 26. In 2009, he made a $5 million donation to the American Hebrew Academy, which prominently featured his endorsement in its promotional materials.

He launched a network of secular Hebrew-language charter schools accessible to both Jewish and non-Jewish students, noted for providing superior Hebrew language education compared to conventional Jewish day schools.

Steinhardt belongs to the "Mega Group," an elite assembly of roughly 20 affluent Jewish businessmen established by Leslie Wexner and the Bronfman brothers, united by their commitment to Jewish philanthropic endeavors.

A dedicated advocate for Israel, Steinhardt describes it as the "Jewish miracle of the 20th century" and regards it as "the most moral state on this planet." In 2017, he emphasized that increased understanding has fostered greater acceptance of Israeli politics.

In April 2017, Steinhardt was among two diaspora Jews invited to light an official torch during Israel's Independence Day ceremony, symbolizing "Jewish unity" and acknowledging his contributions through Taglit-Birthright Israel.

He held the position of Chairman of Tel Aviv University's Board, earned an honorary doctorate in 2011, and provided endowment funding for the Steinhardt Museum of Natural History located in Ramat Aviv.

Publishing

In 2001, Steinhardt ventured into the publishing arena by co-founding the New York Sun, a specialized newspaper based in New York City recognized for its pro-Israel viewpoint and neo-conservative ideology. He notably penned a letter to President Bill Clinton urging the pardon of Marc Rich, referring to him as "my friend...who has been punished enough." Rich received a pardon on Clinton’s final day in office, January 20, 2001. Additionally, Steinhardt endorsed the possible 2008 presidential run of Michael Bloomberg.

Sexual harassment allegations

On September 12, 2018, The Jewish Week disclosed that Hillel International was conducting an inquiry into Steinhardt over "inappropriate sexual remarks" directed at two female staff members from affiliated organizations. Following the initial complaint in 2015, it became routine for female employees to avoid one-on-one meetings with Steinhardt. The second complainant was issued a written apology by Steinhardt in August 2011, admitting to inappropriate comments made the year prior. During the investigation period, Hillel discreetly removed his name from its board of governors webpage. The organization later confirmed that the allegations were substantiated.

Steinhardt responded by stating he would have apologized immediately had concerns been raised at the time and expressed remorse for any discomfort caused. By March 2019, six women had come forward publicly accusing him of unwanted sexual advances.

Private antiquities collection and lifetime ban from collecting artifacts

As an enthusiastic collector of antiquities, Steinhardt lent items to exhibitions such as "Ancient Art of the Cyclades" at the Katonah Museum of Art. He also participated on the American advisory board for auction house Christie's.

In November 2014, Christie's pulled a prehistoric Sardinian sculpture estimated between $800,000 and $1.2 million from auction after it was connected to convicted dealer Giacomo Medici. In January 2018, law enforcement raided Steinhardt’s New York residence and confiscated numerous stolen antiquities that had been illegally obtained over several decades.

After a multinational investigation spanning four years into his purchase and sale of more than 1,000 antiquities since 1987, Steinhardt agreed in December 2021 to surrender 180 pieces valued at $70 million to the New York County District Attorney. This agreement concluded a grand jury investigation and imposed a lifetime prohibition on Steinhardt from acquiring further artifacts. He retained ownership of items acquired through legitimate means. The forfeited antiquities are planned for repatriation to countries throughout the Eastern Mediterranean region, Bulgaria, and Iraq.

District Attorney Cyrus Vance Jr. condemned Steinhardt’s "rapacious appetite for plundered artifacts," emphasizing the cultural harm caused by his disregard for legal ownership and provenance standards. The grand jury probe uncovered that Steinhardt obtained stolen artifacts from dealers such as Giacomo Medici, Giovanni Franco Becchina, Robin Symes, Robert Hecht, among others. Steinhardt’s legal representatives argued that many dealers provided assurances regarding lawful title and provenance for the objects sold to him.

Heliodorus Stele

In 2007, Steinhardt provided the "Heliodorus Stele," an ancient Greek limestone inscription dating back approximately 2,200 years, on loan to the Israel Museum. Specialists identified its connection to fragments unearthed from a cave in Maresha, verifying its provenance. By December 2021, Steinhardt consented to hand over the stele along with 180 other artifacts to the Manhattan District Attorney’s office. Despite this agreement, as of January 2022, the stele continued to be exhibited at the Israel Museum, displayed alongside two Neolithic masks.

Guennol Stargazer

Steinhardt purchased the Guennol Stargazer, a marble figurine estimated to be around 6,000 years old, in 1993. The idol represents a nude human form. In 2017, when he attempted to auction it, the Turkish government initiated legal proceedings to block the sale. Although the auction went forward, the winning bidder later withdrew their purchase. A bench trial held in 2021 determined that Turkey’s claim for repatriation was untimely, thereby permitting the idol to remain within the United States.

Personal life

Steinhardt met his wife Judy in 1967 through a carpool he organized. After Judy mentioned Colorado Milling and Grain Elevator, her father invested in the company; following its 1968 acquisition by Great Western Sugar, it was renamed Great Western United. Judy serves as chair of New York University's Institute of Fine Arts and also leads American Friends of the Israel Museum. The couple has three children. Their daughter Sara Berman is currently president of the Hebrew Language Academy Charter School located in Brooklyn.

Sebastian Mallaby’s 2010 work More Money Than God features a chapter on Steinhardt, portraying him as an avid botanist residing on a rural estate north of New York City.

In his 2001 memoir No Bull: My Life in and out of Markets, Steinhardt disclosed that his father, Sol Frank Steinhardt (known as "Red McGee"), was convicted in 1958 for trafficking stolen jewelry and served prison sentences. He also revealed that some of his initial stock market ventures and possibly his education at Wharton were funded with money originating from his father.

In 2008, Steinhardt was honored with induction into Institutional Investor's Hedge Fund Manager Hall of Fame alongside notable figures such as Julian Robertson and Steven A. Cohen.

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