Article: Robot Funds and Bank Regulation

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Robot Funds and Bank Regulation

Matt Levine, 04 August 2016

What’s Steve Cohen up to? Stamford Harbor Capital, the new firm started by Steven Cohen and led by a longtime deputy, is working with a third-party marketing company that’s meeting with potential clients to gauge interest in investment vehicles that could be started as soon as 2018.

Stamford Harbor is the one that Cohen owns, and that is staffed by employees of his family office, but that Cohen will not supervise and that can therefore raise outside money. (Though it hasn’t yet, and says it won’t until 2018.) This is distinct from Point72, Cohen’s family office, which he does supervise, and which can’t raise outside money until 2018, when Cohen’s Securities and Exchange Commission ban expires. My view, as I’ve said more than once, is that it is just fine for Cohen to get back to managing outside money when that ban expires. But my even more strongly held view is: Good lord, why would he want to? If I worked all the time running my hedge fund and made billions of dollars, and then the SEC shut down my fund, I would take that as a sign that it was time to declare victory and retire.

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