The Rise and Resilience of Steven A. Cohen: Inside the World of Hedge Fund Mastery
Journey of Steven Cohen
Early Life and Education
Steven A. Cohen was born on June 11, 1956, in Great Neck, New York. Raised in a
Jewish family, he was the third of seven siblings. His father was a dress
manufacturer, and his mother was a piano teacher. Cohen developed an early
interest in risk-taking through poker tournaments during his high school years
at John L. Miller Great Neck North High School, where he also played soccer.
After graduating in 1974, he pursued an economics degree at the Wharton School
of the University of Pennsylvania, graduating in 1978. During his time at Penn,
Cohen became a member of the Zeta Beta Tau fraternity's Theta chapter and
served as treasurer. It was during this period that Cohen's entrepreneurial
spirit emerged, as he utilized $1,000 of his tuition money to open a brokerage
account, laying the groundwork for his future in finance.
Early Career and Rise in Finance
After graduating, Cohen began his career on Wall Street in 1978 as a junior
trader in the options-arbitrage department at Gruntal & Co. He quickly
proved his aptitude for trading, making an impressive $8,000 profit on his
first day. Over time, Cohen's skills contributed significantly to the company,
reportedly generating around $100,000 in profits daily. By 1984, he was
managing a substantial portfolio of $75 million and overseeing a team of six
traders.
Founding of S.A.C. Capital Advisors
In 1992, Cohen founded S.A.C. Capital Advisors with $10 million of his own
funds and an additional $10 million from outside investors. The company's name,
'SAC Capital', bears his initials. Known for its rapid and frequent trading,
SAC Capital quickly gained recognition as one of the largest hedge funds. While
initially known for rapid-fire trading with short holding periods, Cohen
gradually shifted towards longer-term investment strategies. This evolution was
noted by media outlets such as The New York Times and The Wall Street Journal,
highlighting Cohen's adaptability and willingness to adjust his approach to
market conditions.
Legal Challenges and Closure of S.A.C. Capital Advisors
In 2013, Cohen-founded S.A.C. Capital Advisors found itself embroiled in a
high-profile legal case involving insider trading. The firm pleaded guilty to
insider trading charges and agreed to a substantial fine of $1.8 billion. This
case marked one of the most significant criminal actions against a hedge fund.
As part of the settlement, Cohen faced restrictions on managing outside money
for two years, and S.A.C. Capital Advisors closed its doors to outside
investors. Despite the challenges in his financial career, Steven A. Cohen made
headlines in September 2020 when he acquired ownership of the New York Mets of
Major League Baseball. Acquiring just over 97% of the team, Cohen's ownership
marked a significant development in the sports world. His involvement with the
Mets offers a new chapter in his professional journey, transitioning from hedge
fund management to sports ownership.
Ownership of the New York Mets
In 2020, Cohen purchased an 87% stake in the New York Mets for $2.4 billion,
becoming the majority owner. He pledged to inject about $9.5 million in
additional payments that offseason for pandemic-hit employees. Despite heavy
spending, the team has struggled, finishing fourth in the National League East
and facing record payroll expenses and luxury taxes. In September 2025,
following a disappointing late-season collapse that cost the Mets a playoff
berth, Cohen issued a public apology to fans via social media. He acknowledged
the team’s failure to meet expectations despite strong early-season performance
and a record $340 million payroll. Cohen promised a thorough review of the
season's failures and praised the fans' loyalty, calling the outcome “unacceptable.”
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Philanthropy and the Steven & Alexandra Cohen
Foundation
Steven A. Cohen's impact extends far beyond the realm of finance and sports
ownership, as evidenced by his significant philanthropic endeavors. The Steven
& Alexandra Cohen Foundation, established in 2001, has donated over $1.3
billion to various charitable causes, with a particular focus on veterans'
issues and children's health. Cohen serves on the board of trustees of the
Robin Hood Foundation, a renowned New York-based charity focused on alleviating
poverty. Additionally, through the Steven & Alexandra Cohen Foundation,
Cohen has supported numerous initiatives spanning health, education, arts, and
community development.
Art Collection and Investments
Steven A. Cohen's renowned art collection is not just a display of wealth but a
testament to his discerning taste and passion for the arts. Cohen's journey
into the world of art began in 2000 when he started seriously collecting. His
collection initially focused on Impressionist masterpieces by artists like
Manet and Monet before transitioning swiftly into contemporary art. Cohen's
collection boasts an array of 'trophy' art, including iconic pieces by renowned
artists. Among his notable acquisitions are a Pollock drip painting purchased
from David Geffen for $52 million and Damien Hirst's striking artwork "The
Physical Impossibility of Death in the Mind of Someone Living." Throughout
his collecting journey, Cohen has made headlines with his landmark purchases
and record-breaking prices. In 2012, he acquired Picasso's masterpiece "Le
Rêve" from Steve Wynn for $150 million, following a mishap that initially
prevented the sale. Another noteworthy acquisition was Jeff Koons's
"Rabbit," purchased for $91.1 million in 2019, setting a new record
for the most expensive work by a living artist sold at auction. Cohen's
collection encompasses a diverse range of artworks by prominent artists such as
Lucio Fontana, Alberto Giacometti, Willem de Kooning, Edvard Munch, and Andy
Warhol. With his collection estimated to be worth around $1 billion, Cohen is
reportedly building a private museum on his Greenwich property to showcase some
of his most prized possessions.
Awards and Recognition
Steven A. Cohen's induction into Institutional Investors Alpha's Hedge Fund
Manager Hall of Fame in 2008 marked a significant milestone in his illustrious
career. Alongside other esteemed figures such as George Soros, James Simons,
and Paul Tudor Jones, Cohen was recognized for his exceptional contributions to
the hedge fund industry. This prestigious honor underscores Cohen's remarkable
achievements as a hedge fund manager and underscores his status as a
trailblazer in the field. It serves as a testament to his outstanding
performance, innovative strategies, and enduring influence within the financial
community.
Conclusion
Steven A. Cohen's journey from hedge fund magnate to sports franchise owner
underscores his multifaceted influence and enduring legacy. His shrewd
financial strategies not only cemented his status as one of the wealthiest
individuals in the country but also facilitated his entry into the realm of
professional sports. As he navigates the complexities of sports ownership,
Cohen's business acumen and vision are poised to leave a lasting imprint on the
world of Major League Baseball and beyond.
