Early Life
Steven A. Cohen was born on June 11, 1956, in Great Neck, New York. His father worked in the garment industry, and his mother was a piano teacher. He grew up in a Jewish family. Cohen developed an interest in poker during high school, which he credits with teaching him "how to take risks". He graduated from John L. Miller Great Neck North High School in 1974 and earned an economics degree from the Wharton School of the University of Pennsylvania in 1978.
Rise to Success
After graduating from Wharton, Cohen began his career on Wall Street as a junior trader in the options arbitrage department at Gruntal & Co.. He quickly rose through the ranks and was managing a $75 million portfolio by 1984, earning the company approximately $100,000 per day. In 1992, Cohen founded SAC Capital Advisors with $10 million of his own money and an additional $10 million from outside capital. SAC Capital became one of the most successful hedge funds, known for its aggressive trading strategies and high returns. However, the firm faced legal challenges, including insider trading charges, leading to its eventual closure and a record $1.8 billion settlement in 2013. Following the closure of SAC Capital, Cohen founded Point72 Asset Management, initially as a family office, which reopened to outside investors in 2018. As of 2024, Point72 manages over $32 billion in assets.
Key Business Strategies
Cohen's investment strategy is characterized by high-risk, high-reward trades. His early career involved rapid-fire, high-frequency trading. SAC Capital produced average earnings of 25% between 1992 and 2013. Point72 has adopted a hybrid investment strategy combining quantitative analysis with discretionary investing. In 2020, Cohen acquired a controlling interest in the New York Mets for $2.4 billion, a record at the time.
Philanthropy
Steve Cohen has donated approximately $715 million to philanthropic causes. He has established the Steven & Alexandra Cohen Foundation, which supports projects in health, education, arts and culture, and the New York community. The foundation has also provided funding for research on post-traumatic stress and traumatic brain injury. Cohen founded the Cohen Veterans Network, a non-profit organization that provides mental health care to veterans and their families. He also serves on the board of trustees of the New York-based Robin Hood Foundation.
