Black Edge Book Review – Steven A. Cohen.
“Behind every great fortune there is a crime.” – Honoré de Balzac
This is a book about one of the most well-known investment funds in the United States (SAC Captial) and the founder and operator of the Captial SAC: billionaire “white hand made” Steven A. Cohen.
Different from Warren Buffett’s investment school, people buy and hold stock of companies for decades. Cohen is a “surfing” trader, earning money by trading stocks during the day, even hours / minutes.
Stock prices often fluctuate according to revenue and profit information … information about new projects / contracts, or products / inventions that companies prepare. SAC Capital has a dense network of “spies” / “spies” throughout the country to collect these insider information before they are published; and carry out the purchase and sale of related stocks based on the information obtained.
Buying and selling stocks and making profits based on this information is illegal and subject to very heavy imprisonment under US securities law. But SAC Capital is not a normal investment fund, a list of employees and “paid” employees of SAC Capital in addition to “monsters” in the financial industry also includes reputable lawyers, former leaders and employees. key members of every US legal agency (FBI, Ministry of Justice and Securities Commission – SEC).
SAC Capital is considered to be the most successful investment fund in the United States (no less than Berkshire Hathaway of Buffet), the 18-year existence of SAC Capital and Steven Cohen is huge. The wealth of Vietnam’s richest people is estimated at US $ 1 billion, which is only half the amount that Steven Cohen earned in a year.
Based on published documents from prosecutors and the FBI, the book describes in detail the biographies of the main characters, the formation process, the operational model, how to “make prices” and make money of SAC. Capital; as well as a 10-year pursuit of US public agencies (FBI, prosecutor, SEC) to bring down and prosecute Steven Cohen.
True stories but thrilling and more attractive than any detective novel.
The only difference is that the detective theory often ends with “godfathers” being put on the horseshoe. In real life Cohen with innate sharpness and sensitivity, and the system of the most reputable lawyers took advantage of the provisions of US law to defeat the FBI and the justice department. Some “managers” under Cohen were imprisoned, SAC Capital was closed, Cohen was banned from managing public money for two years (still entitled to invest his own money).
But the biggest fish of Steven Cohen reached the net, in 2016 Cohen earned $ 2.5 billion (from investing his money). He plans to reopen a new investment fund in 2018 (after the two-year ban expires), it is expected that people will queue up to ask Steven Cohen to invest.