Ed Butowsky

Yesterday afternoon, the Wall Street Journal ran an alarming report: SAC Capital’s number one fan, the guy who stuck by when no one else would, who swore there was no place he’d rather be than in the trenches with Cohen & Co, the one, the only, Ed Butowsky, had pulled his money from the hedge fund. For those failing to grasp the enormity of this move, the following are comments that Butowsky has made to the press re: SAC/Steve over the past several months:

  • “I’m thinking of putting more money with him…Steve Cohen is the Michael Jordan of hedge fund managers…I’d be a fool to take money out.” (May 22, 2013)
  • “The very thought that people want to trash Stevie Cohen, who is one of the great legends in portfolio management, because of some allegations, shame of them. If it was me and I had to live through this stuff the last three years, I would tell everyone to go jump off a boat.” (June 12, 2013)
  • “I don’t believe that criminal charges against the firm would impact Steve Cohen’s traders and their ability to make money.” (July 24, 2013)
  • “Right now you have allegations. We’ve seen allegations and complaints many times that seem horrific and unbelievable only to find later that there’s no support for it.” (July 25, 2013)
  • [After letting the quarterly deadline for client withdrawals come and go:] “I feel like Will Smith in ‘I am Legend’ when everyone else has died. I’m the last man standing…How quickly people are convicted in the public eye without a trial is shocking to me.”(August 16, 2013)
  • “The government says SAC has a culture of insider trading. What about a culture of working-my-a**-off? Because that’s what they’re doing at SAC.” (August 28, 2013)

So to hear the news that Butowsky was not only out but that, as he told the Journal, “[doesn’t] go to bed with a Stevie doll” was downright shocking. Naturally we reached out last night for further comment. Read more »

As many of you know, the last number of months have not been the best of times for hedge fund manager Steve Cohen. In addition to taking it up the tailpipe from several federal agencies, some of which he’s written $600+ million checks to, others whose fearless leader eats raw meat for breakfast and hopes to one day feast on Cohen tartare, the SAC Capital founder has seen friendships tested and found where loyalties lie. And it hasn’t been pretty.

Employees, despite being told their jobs are safe, have been holding exploratory interviews with other funds in hotel rooms that rent by the hour. The guy who previously said he’d be there through “the bombs going off” left Cohen in the trenches, alone, taking grenades. Clients have requested their money back on en masse; as of Friday night, virtually all outside investors were expected to have filed redemptions requests if they had not done so already.

Except for one. Read more »

May 22, 2013: “I’m thinking about putting more money with him,” said Ed Butowsky, managing director at Chapwood Capital Investment Management, who manages $1 billion in client money. The Dallas-based adviser did not say how much his wealthy clients have invested with Cohen’s SAC Capital Advisors, but said the figure tallies into the tens of millions. “Stevie Cohen is the Michael Jordan of hedge fund managers,” Butowsky said, comparing the billionaire trader’s success in the markets to the feats of the legendary professional basketball star. “I’d be a fool to take out money.”

June 12, 2013: The very thought that people want to trash Stevie Cohen, who is one of the great legends in portfolio management, because of some allegations, shame on them,” Butowsky said. “If it was me and I had to live through this stuff the last three years, I would tell everybody to go jump off a boat.”

July 24, 2013: Ed Butowsky, managing director at Chapwood Capital Investment Management, which has several million dollars invested with SAC Capital, said: “I don’t believe that criminal charges against the firm would impact Steve Cohen’s traders and their ability to make money.” Read more »

A lesser man might be sweating the impending fraud charges against the firm that manages his money, but SAC Capital investor Ed Butowsky’s brows and underarms are bone dry. Butowsky, who has gone on record recently to say that 1) he wishes he could put more money with SAC and 2) anyone speaking ill of Steve Cohen can and should go fuck themselves, is fairly certain Team SAC will come out of this stronger than when they started. And when that day comes he’ll be there with party hats and streamers, driving the giant S-A-C-shaped float he’s been working on in his garage through the streets of downtown Stamford, accompanied by Beamers girls shooting zip-up fleeces out of stadium-style tee-shirt guns. There’ll be Zamboni rides and Facepaint, and a petting zoo for the kids. It’ll be the greatest celebration this town has ever seen and will serve as a monument to one man’s unwavering faith in another. And if that other man wants to throw some gratitude in the unwaveringly faithful guy’s direction, maybe by making him a senior adviser or giving him his own parking spot or just taking the time to say, “Ed, I couldn’t have done it without you. And I think of you like a brother,” that’d be okay too. Read more »

“You don’t get much better than Stevie Cohen,” said Ed Butowsky, founder of Chapwood Investments, a private wealth management firm based in Dallas with client money invested in SAC. If Butowsky had his druthers, he would steer more investment assets to Cohen’s hedge fund, which he said has delivered three times the return as the “Oracle of Omaha” Warren Buffett with a third of the risk since 1994. “The very thought that people want to trash Stevie Cohen, who is one of the great legends in portfolio management, because of some allegations, shame on them,” Butowsky said. “If it was me and I had to live through this stuff the last three years, I would tell everybody to go jump off a boat.” [Greenwich Time, earlier]

As you may have heard, SAC Capital is facing some legal trouble at the moment. In addition to the nine current or former employees who have “been linked to insider trading while working at the firm, including four who have pleaded guilty to crimes,” it’s apparently not out of the realm of possibility that the feds will go after founder Steve Cohen on RICO charges. In light of all that, it’s not so shocking to hear that some clients are contemplating submitting redemption requests for the June 3 deadline, on top of the $1.7 billion investors requested to pull earlier in the year. Then you have Ed Butowsky, who is 1. Thinks now more than ever is the time to double down on the Big Guy and 2. Can’t wrap his mind around the notion that investors would look at SAC and see anything but a surefire win. Read more »