When news broke last week that Steve Cohen - who is barred from managing outside money for almost two years - is the owner of a new hedge fund taking in outside money to be managed by the same dudes who run his family office at Point72, we rolled our eyes and thought "Steve gonna Steve."
But while we see the humor in Steve "Dark Edge" Cohen rearing back and kicking the SEC right in the nuts after very recently pretending like he took their punishment seriously, there is one person who will never, ever get this kind of joke:
United States Senator Elizabeth Warren today wrote to Securities and Exchange Commission (SEC) Chair Mary Jo White to raise serious concerns about the agency's decision to approve the application of Stamford Harbor Capital, L.P., a firm that is indirectly-owned by Steven A. Cohen, to register as a money manager for outside clients. Cohen is the former manager of SAC Capital Advisors, and in January was barred by the SEC from "supervising funds that manage outside money until 2018" for his role related to insider trading among SAC Capital's portfolio managers.
And Warren isn't just not laughing, homegirl is downright pissed:
Yet just two months after the SEC announced this "strong", "significant", and "immediate" act of "investor protection," the Commission approved the application of Stamford Harbor to register as an investment management firm. Stamford Harbor's April regulatory filings clearly state that Steven Cohen "is associated with Stamford Harbor by way of his indirect ownership" of the firm, which will retain up to 50 percent of its clients profits. Cohen owns the firm through two separate holding companies- Stamford Harbor Capital Holdings, L.P., and Stamford Harbor Capital, Inc.- set up in March 2016. Even worse, as a journalist from Financial Times points out, the SEC's January settlement "specifically provided for the creation of a structure like Stamford Harbor to take outside money."
And her tone in the letter oscillates between "How dumb do I fucking look?"...
The creation of a shell management structure renders Mr. Cohen's involvement with Stamford Harbor legal under the terms of the Commission's January settlement. "Consistent with his January agreement with the SEC," noted a Stamford Harbor spokesman, "[Cohen] will not supervise the activities of anyone working on its behalf." Instead, the company will rely on the same management team as Point72 Asset Management, Cohen's family office that manages his $11.2 billion fortune.
...and "Do your GODDAMN JOB, Mary Jo!"
The SEC's decision to approve Stamford Harbor- and the January settlement terms that allowed this to happen- make a mockery of the SEC's core mission to "protect investors." The Commission has permitted a recidivist hedge fund manager, well-known for his former company's willingness to evade and ignore federal law, to once again profit from-and potentially exploit- investors.
And while it's safe to assume that White is more than likely rolling her eyes and thinking "Typical Warren move," you also gotta think that she paid a visit to her enforcement people in the last few days, knocked over a desk or two and bellowed "Cohen! Steve fucking Cohen?! Really?"