Feeling nostalgic for the days when men and women in zip-up fleeces with the letters “S A C” carefully stitched over their hearts roamed the land? When from his throne a giant would bark orders and profanity-laced, withering insults at his subjects below? When there was simply no question that returns would run into the double-digits and Zambonis would run on backyard ice rinks? Well, then, Happy Monday, because—in expectation that Steve Cohen will rise again, and soon—the Motley Fool has a little trip down Memory Lane for you, at the corner of Cummings Point Road.
In its first 25 years, SAC often produced 50%+ annual returns, sometimes even exceeding 70% in good years. The firm was so successful in the 1990s that investors were willing to let SAC keep 45% of the investment profits plus a management fee to invest in its funds...In 2012, the firm's fortunes went from bad to worse. After a clandestine investigation, the SEC filed charges against SAC for insider trading. One former manager was sentenced to nine years in prison, and several others were charged for lesser offenses. Steven Cohen, for his part, was never charged with any criminal wrongdoing, and a civil suit for failing to supervise errant employees was eventually dropped in 2013...The firm's ban on accepting outside capital expires in 2018, but a new firm formed by Cohen could potentially sidestep that restriction this year. Stamford Harbor Capital is owned by Cohen, though he will have no management role in the firm whatsoever. The SEC approved the firm's registration in March, clearing the path for the firm to begin raising outside money. In other words, Steven Cohen is still in the game, and he could be a major player again sooner rather than later. Only time will tell, but it seems that SAC Capital's demise may just be an intermission to the unstoppable rise of Steven Cohen.