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Steve Cohen (businessman)

From Alfawiki
Steven A. Cohen
Born (1956-06-11) June 11, 1956 (age 70)
Great Neck, New York, U.S.
Occupation(s)Hedge fund manager, investor, owner of the New York Mets
Known forFounder of Point72 Asset Management and S.A.C. Capital Advisors; principal owner of the New York Mets

Steven A. Cohen (born June 11, 1956) is a prominent American hedge fund manager and has been the principal owner of the New York Mets in Major League Baseball (MLB) since September 14, 2020, holding a controlling stake exceeding 97% of the franchise. He is the founder of the hedge funds Point72 Asset Management and S.A.C. Capital Advisors.

In 2013, S.A.C. Capital Advisors admitted guilt to charges of insider trading and incurred penalties totaling $1.8 billion—comprising $900 million in forfeitures and $900 million in fines—constituting one of the most significant criminal prosecutions involving a hedge fund. As part of a civil resolution linked to this case, Cohen was prohibited from managing external capital for two years. The firm also pled guilty to wire fraud and securities fraud, subsequently ceasing operations for outside investors.

Early life and education

Raised in Great Neck, New York, Cohen's father worked as a dress manufacturer within Manhattan’s garment district, while his mother was employed as a piano instructor. He grew up in a Jewish household as the third among eight siblings. During his high school years, Cohen developed an affinity for poker, crediting the game with fostering his understanding of risk-taking principles. He graduated from John L. Miller Great Neck North High School in 1974, where he was active on the soccer team.

Cohen earned a bachelor's degree in economics from the Wharton School at the University of Pennsylvania in 1978. While attending Penn, he joined the Theta chapter of the Zeta Beta Tau fraternity and held the position of treasurer. With assistance from a friend, he invested $1,000—derived from his tuition funds—into opening a brokerage account.

Gruntal & Co. (1978–1992)

Upon completing his degree, Cohen began his professional journey as a junior trader specializing in options arbitrage at Gruntal & Co.. On his initial day, he secured an $8,000 gain and ultimately produced approximately $100,000 daily for the firm. By 1984, he managed a portfolio valued at $75 million and supervised six traders before launching SAC Capital in 1992.

During the late 1980s, the SEC conducted an investigation into Cohen concerning potential insider trading linked to a 1985 wager on an RCA-GE merger. He exercised his Fifth Amendment right against self-incrimination during testimony. The SEC also examined other transactions involving Brett K. Lurie but did not file insider trading charges against Cohen.

S.A.C. Capital Advisors (1992–2016)

In 1992, Cohen established S.A.C. Capital Advisors with an initial investment of $10 million from his own funds alongside an additional $10 million contributed by external investors. The firm's name 'SAC Capital' originates from Steven A. Cohen’s initials.

By 2003, SAC had become one of the largest hedge funds globally, recognized for its high-frequency trading approach. However, by 2006, Cohen revised his investment strategy toward maintaining equity positions over extended durations. In 2009, SAC managed roughly $14 billion in equity assets.

Racketeering and insider trading allegations

In December 2009, Steven Cohen and his brother Donald faced a lawsuit filed by Steven’s former wife Patricia Cohen alleging racketeering and insider trading misconduct. Although initially dismissed in 2011, the case was revived in 2013 by the 2nd U.S. Circuit Court of Appeals, which reinstated claims based on fraud along with allegations of racketeering and breach of fiduciary duty.

Circuit Judge Pierre N. Leval observed that Patricia Cohen credibly asserted that Steven Cohen concealed $5.5 million during their separation negotiations in 1989. This legal dispute overlapped with heightened regulatory scrutiny of SAC amid an insider-trading probe that led to the arrest of Michael Steinberg, a senior executive at SAC. Affiliates connected to SAC resolved two civil insider trading lawsuits brought by the U.S. Securities and Exchange Commission by paying nearly $616 million without admitting or denying any wrongdoing.

SEC inquiry (2012–2016)

On November 20, 2012, Cohen was linked to a purported insider trading controversy involving former SAC manager Mathew Martoma. Between 2010 and 2013, the SEC brought charges against several S.A.C. employees with different results. Martoma was found guilty in 2014 in what prosecutors described as the most lucrative insider trading scheme ever. Subsequently, the SEC initiated a civil action against Cohen for inadequate oversight of Martoma and senior staff member Michael Steinberg. Cohen reached a settlement in January 2016, consenting to refrain from managing external funds until 2018.

In 2013, S.A.C. Capital Advisors admitted guilt to insider trading charges, incurring $1.8 billion in fines and halting management of outside capital. Although central to S.A.C., Cohen was not criminally charged. He was featured in a January 2017 The New Yorker profile titled "When the Feds Went After the Hedge-Fund Legend Steven A. Cohen".

Point72 Ventures (2014–present)

Cohen launched Point72 Ventures in 2014, a venture capital firm concentrating on early-stage investment opportunities.

GameStop short squeeze

During the January 2021 GameStop short squeeze, Cohen’s hedge fund Point72, together with Ken Griffin’s Citadel, injected $2.75 billion into Melvin Capital, managed by former Cohen protégé Gabe Plotkin. Cohen asserted that this financial support would not affect his investment in the New York Mets. After receiving threats targeting him and his family amid the situation, Cohen deactivated his Twitter account on January 29, 2021.

Vincent D'Onofrio portrays Cohen in the 2023 biographical film Dumb Money, which dramatizes the short squeeze event.

Wealth

As of 2024, Forbes estimated Cohen’s net worth at $21.3 billion, ranking him as the 30th wealthiest individual in the United States. The Wall Street Journal dubbed him "the hedge fund king" in 2006. His earnings peaked at $1 billion in 2005, a significant increase from $428 million earned in 2001. Forbes recognized him as the top-earning hedge fund manager in 2014. His penthouse apartment in New York’s Bloomberg Tower was listed for $115 million in 2013. According to Institutional Investor, Cohen earned approximately $1.7 billion in 2020.

New York Mets

In 2012, Cohen acquired an 8% ownership stake in the New York Mets. By August 2020, he began negotiations with Fred Wilpon and Saul Katz to acquire controlling interest and finalized the purchase the following month. Major League Baseball approved the transaction in October 2020, enabling Cohen to assume control in November.

During the 2021 campaign, Cohen dismissed Brodie Van Wagenen and Jared Porter amid team difficulties and controversies. Despite an encouraging start, the Mets concluded with a 77-85 record, marking one of the longest first-place stretches for a team finishing with a losing record. In 2022, boasting MLB’s highest payroll, the Mets improved to a 101-61 record and qualified for postseason play but squandered a substantial division lead to the Atlanta Braves and were eliminated by the San Diego Padres in the Wild Card round. In 2023, even after raising payroll to $331 million under Cohen’s ownership, the team finished with a disappointing 75-87 record and missed playoff contention following a poor June stretch.

Philanthropy

Cohen has contributed $715 million to charitable initiatives, with a particular emphasis on veterans and children's healthcare. He holds a position on the board of trustees for the New York-based Robin Hood Foundation.

The Steven & Alexandra Cohen Foundation supports a variety of causes including health, education, arts, culture, and community projects in New York. In 2014, the foundation financed research into post-traumatic stress and traumatic brain injury at New York University Langone Medical Center. That same year, it awarded over $100,000 to the Bruce Museum of Arts and Science. In 2019, the foundation donated $50 million to the New York Museum of Modern Art’s $400 million capital campaign; as a result, MoMA named its largest contiguous gallery the Steven and Alexandra Cohen Center for Special Exhibitions. Cohen also serves on the boards of both MoMA and LA MOCA. In 2024, the foundation made a landmark $116 million gift to LaGuardia Community College, representing the largest single donation ever given to a US community college.

In April 2016, Cohen pledged $275 million to create the Cohen Veterans Network, with the goal of establishing 20 to 25 mental health centers nationwide for veterans and their families by 2020. Additionally, Cohen Veterans Bioscience, which he funds, focuses on studying the impact of posttraumatic stress disorder on combat veterans.

Politics

In 2015, Cohen and his wife Alexandra contributed $2.25 million to the Super PAC America Leads in support of Chris Christie’s presidential campaign. In 2017, Cohen donated $1 million towards Donald Trump’s inauguration. By 2021, he had given $500,000 to a Super PAC backing Andrew Yang during the New York City Democratic mayoral primary and provided $1.5 million in support of Eric Adams.

Art collection

Cohen’s art collection is estimated to be worth approximately $1 billion. His serious collecting began around 2000, initially concentrating on Impressionist artists such as Manet and Monet before shifting focus toward contemporary pieces. While he has acquired works by emerging talents like Adam Pendleton, Cohen is primarily recognized for collecting high-profile 'trophy' artworks by celebrated artists. Notable acquisitions include a Jackson Pollock drip painting purchased from David Geffen for $52 million and Damien Hirst’s The Physical Impossibility of Death in the Mind of Someone Living.

In 2006, Cohen made an offer of $139 million for Picasso’s Le Rêve from Steve Wynn, which would have been the highest-priced art sale at that time; however, the transaction was canceled after Wynn accidentally damaged the painting. Cohen ultimately purchased it in 2012 for $150 million. In May 2019, through dealer Robert Mnuchin, he acquired Jeff Koons’s Rabbit for $91.1 million—setting a record then as the most expensive artwork sold at auction by a living artist.

Cohen owns or has owned pieces by Lucio Fontana, Alberto Giacometti, Willem de Kooning, Jeff Koons, Edvard Munch, Pablo Picasso, and Andy Warhol. In 2015, he reportedly bought Alberto Giacometti’s Man Pointing, regarded as the priciest sculpture worldwide. His collection is valued near $1 billion, and he is said to be planning a private museum on his property in Greenwich. Among notable works displayed at SAC’s lobby is Marc Quinn’s Self, a sculpture made from frozen blood.

Legacy and honors

In 2008, he was honored with induction into Institutional Investors Alpha's Hedge Fund Manager Hall of Fame, joining distinguished individuals such as Alfred Winslow Jones, George Soros, James Harris Simons, Kenneth C. Griffin, and Paul Tudor Jones.

Representation in popular media

The Showtime drama Billions features a character named Bobby Axelrod, played by Damian Lewis, who was loosely modeled after Cohen.

Personal background

Cohen has entered into marriage twice. His first marriage was in 1979 to Patricia Finke, originally from Washington Heights, New York; they divorced in 1990 and share two children. In 1991, he met Alexandra "Alex" Garcia, a single mother of Puerto Rican heritage who grew up in Washington Heights after moving from Harlem. Alex is a devoted Mets supporter and holds an active role with the team as president of the Amazin’ Mets Foundation; she is also listed as an owner alongside Cohen. Together, they have five children, including one from her prior marriage.

In 1998, Cohen acquired a residence spanning 35,000 square feet situated on 14 acres in Greenwich, Connecticut.

External links

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