Previously Insider Monkey, your source for free insider trading data, discussed Steve Cohen's legal troubles. Steve Cohen's SAC Capital is having some problems with the Federal agents who are trying to tie him and his firm to the recent insider trading scandals. This probably gave some skeptics some courage to question Steve Cohen's star power. Here is an excerpt from a recent Insider Monkey article:
In the hedge fund business there are always some superstars, like John Paulson, who can maintain the same standard of outperformance, but based on these recent numbers it does not look like Steve Cohen is that anymore,” said Nicolas Bollen, a professor of finance who studies hedge funds at Vanderbilt University’s Owen School of Management.
Did Steve Cohen really lose his mojo? We don't think so. Steve Cohen's SAC Capital returned 15% in 2010, which was a much better performance than a typical hedge fund. In this article we show that his largest 40 stock positions kept ouperforming the S&P 500 index. His largest stock positions returned 4.5% so far in 2011 versus 2% for the SPY. Here is how Steve Cohen's favorite positions performed since the beginning of the year: