Early Life and Career Beginnings
Steven Schonfeld's journey began in 1988 when he founded a proprietary trading firm. With an initial investment of $400,000, Schonfeld quickly built a successful trading operation. His early career involved roles as a stockbroker and a period at the International Finance Corporation (IFC), where he structured emerging market index funds. Schonfeld's early aptitude for finance was evident in his ability to understand and apply mathematical concepts to trading strategies. In 2009, Schonfeld shifted from a proprietary trading firm to a family office.
Rise to Success and Schonfeld Strategic Advisors
Schonfeld's firm evolved into Schonfeld Strategic Advisors, a multi-strategy hedge fund that opened to outside investors in 2016. Schonfeld's firm has demonstrated consistent performance. In 2019, Schonfeld achieved an average return of roughly 20% over the previous six years, almost double that of the S&P 500 Index. This success has led to significant growth in assets under management, making Schonfeld a prominent figure in the hedge fund industry. Schonfeld Strategic Advisors has offices spanning five continents, combining global reach with local market expertise.
Key Business Strategies
Schonfeld's success is rooted in his ability to identify and capitalize on short-term market movements. His firm invests across various strategies, including fundamental equity, quantitative, and tactical trading. His business model involves providing capital, technology, and infrastructure to trading teams, allowing them to focus on generating returns. Schonfeld's approach emphasizes flexibility, innovation, and a focus on attracting and retaining top talent.
Philanthropy
Steven Schonfeld is involved in philanthropy through the Steven B Schonfeld Foundation. The foundation supports various causes, including cancer research, education, and women in STEM. In 2023, the foundation partnered with the University of Miami to create the Steven B Schonfeld Computer Science and Computer Engineering Scholarship and Award to support female students. The Schonfeld Foundation made a gift to increase opportunities for students who aspire to careers in tech and finance, funding two academic scholarships annually to sophomore students majoring in computer science or computer engineering.
