By Matthew Goldstein
Hedge fund titan Steve Cohen is taking steps to appear more open these days. Over the past year or so, he’s been showing up at industry conferences, charity events–even allowing himself to be photographed with his wife for a glossy spread in Vanity Fair magazine.
But there are some things the SAC Capital founder is drawing a line in the sand over when it comes to greater transparency, including some of his own words.
Cohen and his legal team are fighting hard to keep hours worth of deposition testimony that he recently gave in a civil lawsuit under wraps. Last year, the billionaire trader sat for a deposition in the long-running stock manipulation lawsuit filed by Canadian insurer Fairfax Financial against SAC Capital and other hedge funds, including Dan Loeb’s Third Point and Jim Chanos’ Kynikos Associates.
His lawyers argue that making the deposition transcript public–even just extended excerpts–would provide “a road map, from the head of the firm, as to how SAC does business.” Cohen’s legal team contends allowing the transcript to come public would help his hedge fund competitors peel back some of the mystery that surrounds SAC Capital’s long and successful track record.
But Cohen also may not want the deposition released because it provides some inkling into his thoughts about the ongoing federal insider trading investigation, which already has led to guilty pleas by two former SAC Capital traders.