Early Life and Education
Steve Cohen was born in Great Neck, New York, in 1956. He grew up in a Jewish family as the third of eight children. His father worked as a dress manufacturer, and his mother was a piano teacher. Cohen developed an interest in poker during high school, which he credits with teaching him to take risks. He graduated from John L. Miller Great Neck North High School in 1974. Cohen received an economics degree from the Wharton School of the University of Pennsylvania in 1978.
Rise to Success
After graduating from Wharton, Cohen began his career as a junior trader in the options arbitrage department at Gruntal & Co. In 1992, he founded S.A.C. Capital Advisors with $10 million of his own money and an additional $10 million from outside capital. The firm became highly successful, known for its aggressive trading strategies. Cohen's investment style involved high-risk, high-reward strategies. Despite facing legal issues, including an insider trading scandal, Cohen was never criminally charged, but faced a two-year ban from managing outside capital. In 2020, Cohen purchased a controlling interest in the New York Mets for $2.4 billion.
Key Business Strategies
Cohen's success with SAC was built on high-risk, high-reward trades. The firm's strategy involved rapid-fire trading, holding stocks for short periods. Point72 Asset Management, founded in 2014, employs a disciplined, research-driven approach to achieve superior risk-adjusted returns through hedge fund and investment strategies. Point72 utilizes multiple trading strategies, with long/short equity investing as a core expertise.
Philanthropy
Cohen has given $715 million to philanthropic causes, including veterans and children's health. In April 2016, he committed $275 million to the Cohen Veterans Network to establish mental health centers for veterans and their families.