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.
The man who through it all has said loudly and proudly, I'm stickin' with Steve.
The man who swore he wouldn't let those attacking Steve get to him but in a moment of weakness could not hold his tongue and told them where they could go.
The man whose confidence in Steve has never once wavered, not for one single second.
The man who doesn't care if he's the last investor standing because as long as he's got Steve, he's got everything.
The one. The only. Ed Butowsky.
The Dallas money manager said early Friday afternoon he planned to let that day's quarterly deadline for SAC clients to request withdrawals come and go without asking for any money back. He declined to specify the size of the investment in SAC. "I feel like Will Smith in 'I Am Legend' when everyone else has died," said Mr. Butowsky, managing director of Chapwood Investments LLC, an adviser to wealthy clients on hedge-fund and other investments. "I'm the last man standing."
Mr. Butowsky said in sticking with SAC he is "standing up for what my father would be proud of, which is due process." His father, who died in 2003, was a former chief enforcement lawyer of the SEC. "How quickly people are convicted in the public eye without a trial is shocking to me," the money manager said in an interview. Mr. Butowsky said his views aren't personal. He has never spoken to Mr. Cohen.
His views aren't personal yet. He hasn't spoken to Cohen yet. "Yet" because if SAC goes family office, which seems more than a little likely, don't think Butowsky is going to walk away just because he isn't blood; he's come too far to turn his back. Where there's a will there's a way and certainly there should be a way for Steve to rustle up a sister or a cousin or an aunt looking for a younger man. Somebody, anybody, so that Butowsky can not only keep investing with Steve but, as a member of the Cohen family, look forward to:
- Sunday night dinners
- Summer vacations at Cohen's back-up house on Further Lane
- Working with Steve on his bike on the weekends
- The softer edge and twinkle in the eye with which SC berates him for talking during the previews
- Waking up Christmas morning at the manse to open presents with the fam (he's already mentally rearranged the mantle to make room for his stocking)
An SAC Loyalist Weighs the Cost [WSJ]
Earlier: Ed Butowsky And SAC Capital: A Love Story, In His Own Words; Today’s Criminal Charges Not Withstanding, Area Man Still Confident SAC Capital’s Got This Thing Under Control; Area Man Can’t For The Life Of Him Fathom Why Investors Would Want To Take Their Money And Run From SAC; If Area Man Were Steve Cohen, He’d Tell His Detractors To Take A Long Walk Off A Short Pier, Based On The Hopeful Assumption That They Don’t Know How To Swim Or Even Tread Water