Insight and investigations from our expert reporters
Wall Street and golf have had a long and storied love affair. And over the years, many a hedge fund manager has given up the trading game to spend more time on the links.
But the revelation that SAC Capital has hired a former institutional stock broker to spend most of his time on prestigious golf courses, schmoozing corporate executives and wealthy investors, is another stark example of what separates hedge fund managers from mere mortal investors. As several securities experts told me, it doesn’t really matter whether or not a corporate executive says anything of real substance to Steve Cohen’s unofficial golf pro, Sam Evans. What matters is that Cohen and his traders are getting the kind of unique and intimate access to corporate executives that ordinary investors can never dream of.
The story comes at a time when regulators are trying to create a level playing field for investors. But as Donald Langevoort, a Georgetown University Law Center professor says, the notion of creating fair markets where all investors are treated the same is a “myth” and it is a “myth that a lot of people put to good use.”
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