This Hedge Fund Manager Got Away With Insider Trading… Then Made Billions

whatshot 108 snips

Oct 19, 2023

Dive into the shady world of insider trading with insights on Steve Cohen's billion-dollar empire. Explore the grueling '996' work culture and what it does to work-life balance. Hear tales of entrepreneurs who thrive by embracing unique productivity hacks. Discover the intriguing link between attractiveness and investment success. Plus, explore radical longevity strategies and the weird realm of extreme personal experiments. The conversation is filled with insights and anecdotes that challenge conventional views on success.

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ANECDOTE

Cohen's Early Success

Steve Cohen, a renowned hedge fund manager, began day trading at 23, quickly amassing wealth.
In 2 years, he generated $100,000 daily profit for his firm, exploiting market arbitrages.

insights

INSIGHT

Insider Trading & Consequences

Despite amassing billions, much of Steve Cohen's fortune involved insider trading.
While SAC, his firm, shut down, he faced minimal consequences, quickly establishing Point72.

question_answer

ANECDOTE

Exploiting Expert Networks

Steve Cohen, SAC's founder, reportedly used expert networks like GLG to gain insider information.
He befriended consultants, offering them salaries in exchange for confidential data, then cutting ties.

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Attractiveness, Ethics, and Hedge Fund Success

02:07 • 11min

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The '996' Work Culture and its Implications

13:11 • 7min

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Exploring Productivity Models and Work Culture Innovations

20:20 • 2min

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Exploring Work Ethos and Entrepreneurial Ventures

22:02 • 19min

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Celebrating Entrepreneurial Success and the Power of Long-Form Content

41:08 • 2min

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Trading Sardines: The Investment Landscape

42:59 • 19min

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Revolutionizing Longevity: The Interplay of Health, AI, and Life Choices

01:01:45 • 3min

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Pushing Boundaries: Exploring Extreme Personal Experiments

01:04:51 • 3min

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Sapiens

A Brief History of Humankind

Yuval Noah Harari

This book surveys the history of humankind from the Stone Age to the 21st century, focusing on Homo sapiens. It divides human history into four major parts: the Cognitive Revolution, the Agricultural Revolution, the Unification of Humankind, and the Scientific Revolution. Harari argues that Homo sapiens dominate the world due to their unique ability to cooperate in large numbers through beliefs in imagined realities such as gods, nations, money, and human rights. The book also examines the impact of human activities on the global ecosystem and speculates on the future of humanity, including the potential for genetic engineering and non-organic life.

Margin of Safety

Risk-Averse Value Investing Strategies for the Thoughtful Investor

Seth Klarman

In 'Margin of Safety', Seth Klarman discusses his views on value investing, drawing from the concepts of Benjamin Graham and David Dodd. The book critiques speculative investing and institutional investing practices, advocating for a disciplined and risk-averse approach. Klarman emphasizes the importance of understanding the intrinsic value of investments, avoiding false precision in valuations, and maintaining a margin of safety to mitigate potential losses. The book is divided into sections that cover the philosophy of value investing, the critique of institutional investing, and practical strategies for determining value and managing portfolios.

Smartest Guys in the Room

McLean, Bethany, Elkind, Peter

This book provides a meticulously researched and character-driven narrative of the Enron scandal. It follows Enron's journey from obscurity to the top of the business world and its subsequent disastrous demise. The authors, Bethany McLean and Peter Elkind, draw on unique sources to reveal the roles of key figures such as Ken Lay, Jeff Skilling, and Andy Fastow. The book is a story of human weakness, hubris, and greed, and it serves as a microcosm of the flaws in American business. The tenth-anniversary edition includes a new chapter revisiting the fall of Enron and its aftermath.

Black Edge

Charles Dinwah

Eustacie Matthew

This book details the government's seven-year investigation into SAC Capital and its founder Steven Cohen, highlighting the use of insider trading and the challenges faced by law enforcement in prosecuting high-level financial crimes. It offers a revealing look at the power dynamics and ethical issues within Wall Street.

Episode 509: Shaan Puri (https://twitter.com/ShaanVP) and Sam Parr (https://twitter.com/theSamParr) dive into the white collar crimes of Steve Cohen, the pros and cons of working 100 hours a week, and how to play the right game as a founder, investor, or asset manager.

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Check Out Sam's Stuff:

• Hampton - https://www.joinhampton.com/

• Ideation Bootcamp - https://www.ideationbootcamp.co/

• Copy That - https://copythat.com/

Check Out Shaan's Stuff:

• Try Shepherd Out - https://www.supportshepherd.com/

• Shaan's Personal Assistant System - http://shaanpuri.com/remoteassistant

• Power Writing Course - https://maven.com/generalist/writing