By Matthew Goldstein
The full year numbers aren’t in, but it appears Steve Cohen’s SAC Capital had a pretty good year–especially compared to most other long/short equity hedge funds which lost money. But how does this year’s 8% gain stack-up against other strong years posted by the Stamford, Conn. hedge fund?
As we reported previously on UF, a good chunk of SAC Capital’s trading prowess in 2011 is being credited by sources to a single team led by Gabe Plotkin. His $1.2 billion book is one of the largest at SAC Capital and has generated between $150 million and $200 million in profits.
Indeed, only Cohen’s own 2 billion book–called the “big book,” the “Cohen account,” or simply “COHE”–is believed to manage more money at the $14 billion fund.
But SAC Capital’s projected 8% return got me thinking about 2007, another year when Cohen’s fund posted pretty good numbers even as some hedge funds (notably the Bear Stearns funds) either stumbled or crashed burned on the way to the start of the financial crisis.
A while ago, I got my hands on some old performance stats for SAC Capital’s long/short book for 2007. And while it’s hard to draw too many conclusions from the numbers, they do offer a glimpse into some of the muscle behind Cohen’s 900-employee trading empire.