Hello readers! Today's video is about Steven Cohen, the founder of SAC Capital, who built a hedge fund empire that managed $15 billion and averaged returns of 30% a year for 20 years.
The video explores how the FBI and SEC accused SAC Capital of insider trading, and after a seven-year investigation, the fund pleaded guilty to insider trading, and Cohen's henchmen went to prison. Despite this, Cohen managed to evade criminal charges. The story of how the Feds tried and failed to bring down the greatest trader who ever lived is explored in "Black Edge" by Sheelah Kolhatkar.
Here are some interesting points that you will get from this video:
- Steven Cohen was born into a middle-class family on Long Island, and he mastered poker in high school, which taught him the art of making money.
- SAC Capital focused on quick trades, reacting to market events rather than investing for the long term.
- Cohen charged a 50% performance fee of profits each year.
- Cohen hired the best and brightest traders and analysts who could get the inside scoop.
- Cohen's favorite sector was health care, and he hired a biotechnology specialist named Mathew Martoma, who used insider information to make trades.
In my personal opinion, this video is a fascinating look into the world of high finance and the lengths that some people will go to make money. It's also a cautionary tale about the dangers of insider trading and the consequences that can come with it.
According to an expert opinion, the story of Steven Cohen and SAC Capital is a prime example of the need for stronger regulations and oversight in the financial industry. Insider trading is illegal for a reason, and it's important that we have measures in place to prevent it from happening.
I invite you to press the play button and watch this video to learn more about Steven Cohen and the rise and fall of SAC Capital.