Whale Week: Hedge Fund King
Forget Shark Week on that other cable channel. For the next 5 days CNBC’s Fast Money is bringing you Whale Week. Of course we’re talking about the biggest movers and shakers on Wall Street – aka “whales.” We profile their investment styles and then you trade in their wake. On Tuesday, we present the King Of The Hedge Fund.
Few whales swim with the ferocity of Steven Cohen. Publicity shy, Cohen is rarely photographed in his natural habitat. But as head of SAC Capital in Greenwhich, Connecticut; Cohen is king of the swiftest species of whales: the hedge fund manager.
His specialty is the quick kill. He jumps in and out of positions, often finding prey in uncharted and foreign waters. Such speed has allowed him to charge a reported 50% on profits and to amass a personal fortune of $3 billion dollars
But, in a sign that even the largest whales on Wall Street need to adapt to survive, Cohen no longer relies solely on rapid fire kills. The whale will now often stalk his prey for months; whole companies such as Ameritrade (AMTD) and Take-Two Interactive (TTWO), in which he holds large positions.
Cohen’s rapacious appetite for equities is matched only by his love of art – spending over an estimated $700 million in the last five years.
If you ever visit his office, you’ll find Damien Hirst's $8 million dollar 14-foot tiger shark - submerged in a tank of formaldehyde. It just goes to show that sharks are no match for a Wall Street Whale.
Dylan Ratigan asks the guys how to trade like Cohen.
Jeff Macke says Steve Cohen is very difficult to ride with.
Pete Najarian explains he makes mistakes, but he is very good a finding a gem.
Eric Bolling says own a company as Steve Cohen announces what he owns, but be prepared for big volatility.
Guy Adami says if Steve Cohen makes a statement publicly, listen to what he says closely. Had investors listened what Cohen said about Phelps Dodge, when it was acquired by Freeport-McMoRan (FCX), Guy feels investors would have made money.
Whale Week: Hedge Fund King
| TICKER | COMPANY | PRICE | CHANGE | %CHANGE |
|---|---|---|---|---|
| -- | -- | -- | -- | -- |
| FCX | Freeport-McMoRan Inc | 51.23 | UNCH | UNCH |
| TTWO | Take-Two Interactive Software Inc | 150.61 | UNCH | UNCH |
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Trader disclosure: On Aug 7 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders:Najarian Owns (CSCO), (NMX),(GS); Bolling Owns (NMX)