This forces up the price of shares and sends short sellers scrambling to cover their positions which may further drive up the price.At this point, Cohen would sell his position for a handsome profit.
He credited poker to be his biggest determinant in his risk taking training.The acquisition increased Cohen’s position on Ardea to almost $40 billion.SAC took long positions in Whole Foods in 20 for $49 million and $78 million respectively.In 2006, SAC’s trading accounted for 2% of all stock market trading activity.As a pure trader, Cohen attempts to take advantage of an equity’s up and down movements in a bid to generate excess returns without assuming additional risk. He is the founder of SAC Capital Advisors, now Point72 Asset Management.
Steve Cohen was born on June 11, 1956 in Long Island, New York.
This is in contrast to value investors who buy and hold stocks in their portfolios for years.
Cohen has been referred to as a hair-trigger trader – a trader who opens and closes a position within seconds of the idea conceiving in his/her mind.
At the beginning of 2013, the fund had approximately $14 billion under management.
For two decades, SAC had generated annualized returns of 30% for its investors.
He earned 70% returns on his portfolio by riding the high-tech fad of 1998-1999.