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Steve Cohen bought the Mets for $2.5 billion yesterday, immediately making him the wealthiest owner in baseball.
He has a wild, fascinating story.
Time for a thread
He has a wild, fascinating story.
Time for a thread
1) Steve Cohen was born and raised in New York, growing up on the North Shore of Long Island.
The Cohen family, 10 in total, was considered middle class.
Steves father was a garment manufacturer and his mother taught piano lessons.
The Cohen family, 10 in total, was considered middle class.
Steves father was a garment manufacturer and his mother taught piano lessons.
2) Since he was a kid, Steve Cohen has been obsessed with "taking risk".
In high school, when he wasn't playing soccer, Cohen was at the local grocery store stocking shelves for $1.85/hour.
Cohen eventually quit, as he was making more money from playing poker on the weekends.
In high school, when he wasn't playing soccer, Cohen was at the local grocery store stocking shelves for $1.85/hour.
Cohen eventually quit, as he was making more money from playing poker on the weekends.
3) Steve Cohen was a great student, graduating from The Wharton School of University of Pennsylvania in 1979.
Due to "similarities with poker", Cohen grew a love for financial markets.
Cohen used $1k of tuition money to open a brokerage account, trading stocks between classes.
Due to "similarities with poker", Cohen grew a love for financial markets.
Cohen used $1k of tuition money to open a brokerage account, trading stocks between classes.
4) After graduating in 1978, Steve Cohen went to work for Gruntal & Co. - a boutique investment banking and brokerage firm.
Cohen immediately became a legend on the trading floor.
Rumor has it Cohen made $8,000 in profit his first day on the job, equivalent to ~$32,000 today.
Cohen immediately became a legend on the trading floor.
Rumor has it Cohen made $8,000 in profit his first day on the job, equivalent to ~$32,000 today.
5) Within 5 years of joining Gruntal & Co., Steve Cohen had become one of the hottest commodities on Wall Street.
Cohen was routinely bringing in $100,000 a day in profits and ran a team of traders managing a $75M portfolio.
But that wasn't enough.
Steve Cohen wanted more…
Cohen was routinely bringing in $100,000 a day in profits and ran a team of traders managing a $75M portfolio.
But that wasn't enough.
Steve Cohen wanted more…
6) In 1992, Steve Cohen left Gruntal & Co. to start SAC Capital Advisors - a hedge fund armed with $20M in capital.
SAC quickly became one of the most well respected hedge funds in the world, averaging 30% returns over an 18-year period.
By 2009, the firm managed $14 billion.
SAC quickly became one of the most well respected hedge funds in the world, averaging 30% returns over an 18-year period.
By 2009, the firm managed $14 billion.
7) In 2013, everything came crashing down.
After a 6 year SEC investigation, multiple SAC portfolio managers were arrested and charged with insider trading.
Steve Cohen avoided jail himself, but SAC pleaded guilty to insider trading and paid a record $1.8 billion fine.
After a 6 year SEC investigation, multiple SAC portfolio managers were arrested and charged with insider trading.
Steve Cohen avoided jail himself, but SAC pleaded guilty to insider trading and paid a record $1.8 billion fine.
8) In 2014, restricted from managing outside capital, Steve Cohen moved the assets from SAC to Point72 Asset Management.
Point72 was originally a family office, but started taking outside money once the SEC restriction was lifted in 2018.
Point72 now has $17+ billion in AUM.
Point72 was originally a family office, but started taking outside money once the SEC restriction was lifted in 2018.
Point72 now has $17+ billion in AUM.
9) From a sports standpoint, Steve Cohen has always had a love for baseball, and his hometown Mets in particular.
In 2012, after a failed attempt to buy the Dodgers, Cohen purchased an 8% stake in the Mets for $40M.
But when the Mets went up for sale last year, Cohen was ready.
In 2012, after a failed attempt to buy the Dodgers, Cohen purchased an 8% stake in the Mets for $40M.
But when the Mets went up for sale last year, Cohen was ready.
10) Yesterday, Steve Cohen entered into an agreement to increase his Mets ownership stake from 8% to 95%.
The deal values the Mets at $2.475 bln, and will be finalized once approved by 23 MLB owners.
Worth $14.5 billion, Cohen is wealthier than the next 3 MLB owners combined.
The deal values the Mets at $2.475 bln, and will be finalized once approved by 23 MLB owners.
Worth $14.5 billion, Cohen is wealthier than the next 3 MLB owners combined.
11) As the wealthiest owner in baseball, Mets fans will expect Steve Cohen to empty his pockets.
Will it happen? Perhaps.
There's no salary cap, he has the money, is super competitive, and emotionally incentivized as a lifelong Mets fan.
That’s a dangerous combination.
Will it happen? Perhaps.
There's no salary cap, he has the money, is super competitive, and emotionally incentivized as a lifelong Mets fan.
That’s a dangerous combination.
12) Steve Cohen went from stocking shelves at the local grocery store for $1.85/hour to buying his favorite childhood sports team for $2.475 billion.
Whether you think he did it the right way or not, that's super impressive.
Whether you think he did it the right way or not, that's super impressive.
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Sources:
https://www.businessinsider.com/the-fabulous-life-of-steve-cohen-2012-12#he-met-his-current-wife-through-a-dating-service-14
https://elitesportsny.com/2020/09/14/steve-cohen-finalizes-agreement-to-purchase-the-new-york-mets/
https://ritholtz.com/2010/03/sac-30-gains-annually-for-18-years/
https://fortune.com/longform/steve-cohen-billionaire-point72-hedge-fund/
https://www.businessinsider.com/the-fabulous-life-of-steve-cohen-2012-12#he-met-his-current-wife-through-a-dating-service-14
https://elitesportsny.com/2020/09/14/steve-cohen-finalizes-agreement-to-purchase-the-new-york-mets/
https://ritholtz.com/2010/03/sac-30-gains-annually-for-18-years/
https://fortune.com/longform/steve-cohen-billionaire-point72-hedge-fund/
