Michael Steinberg Wasn't Sure Steve Cohen Would Be Thrilled To Hear He Was Insider Trading, Needed To Work Out The Pros And Cons First


Pro: Cohen gets concrete evidence we're working our tails off. Con: He rips our throats out for implicating him in the crime. Pro: His lips say "tell me." Con: His eyes say, "keep your mouth shut." Pro: I can maybe cut a deal with the prosecutors some day. Con: I may be driven out to the docks.

Cohen’s top lieutenant, Michael Steinberg, on trial for insider trading in Manhattan federal court, and his research analyst Jon Horvath debated what to tell the mega-investor about the inside information they had on Dell, Horvath testified Monday. The analyst’s inside information on Dell indicated the company would miss analysts’ estimates when it reported earnings in August 2008. That differed from the positive view others at the hedge-fund giant had on Dell, which led SAC and Cohen to take a big long position in the stock. In an email to Horvath on Aug. 25, Steinberg, a portfolio manager, wrote that he hadn’t mentioned any of Horvath’s Dell information to Cohen and that “I’d like to properly weigh the risk-reward of doing so.”



Steve Cohen Needs To Go Stress Shopping, STAT

In objective terms, worse things have happened to Steve Cohen than the news he received today. The charges against Mathew Martoma re: allegedly masterminding the largest insider trading scheme ever during his time at SAC. Friday's arrest of high-ranking employee Michael Steinberg. The $614 million he needs to personally pony up to settle with the Securities and Exchange Commission (which he may not even be allowed to do without an admission of guilt). The slanderous claim his house clocks in at a mere 14,000 square feet. The circling of federal investigators who want him bad. And yet presumably none of that compares to today's hit, which must have him in a fury that only the purchase of the Mona Lisa can assuage.