Forbes magazine has just released “The 25 Highest-Earning Hedge Fund Managers And Traders” list and Steven Cohen came in No. 3.
According to Forbes reporter Nathan Vardi, Cohen made an estimated $US2.3 billion last year while his hedge fund was hit with redemptions and had to plead guilty to insider trading charges and pay a massive fine.
In terms of performance, SAC Capital had a solid year in 2013. The fund posted returns of 19 per cent, but still trailed the S&P, the report said.
As for headlines, it was a rough year, though. SAC, the once $US14 billion hedge fund was criminally indicted on insider trading charges last summer. In November, SAC pleaded guilty and agreed to pay a $US1.8 billion fine.
As part of the settlement, SAC will no longer manage outside money. Instead, SAC will operate as a family office hedge fund managing about $US9 billion of Cohen’s personal fortune and money from its employees.
Since August 2009, U.S. Attorney Preet Bharara has successfully convicted 79 people, including a handful of SAC Capital alums, on insider trading charges. The most recent former SAC traders to plead guilty are Michael Steinberg and Mathew Martoma.
It’s widely believed that Cohen is the ultimate target in the government’s crackdown on insider trading. However, they haven’t been able to accuse him of any wrongdoing. They may never be able to do that.
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