Thursday, December 2, 2010

The SAC Capital Man Said To Be "Colluding" Against The Euro Just Joined George Soros' Fund

In January, a Wall Street Journal story freaked out the government when it claimed that hedge funds were "colluding" against the Euro.

The article said an evil idea had been hatched by SAC Capital's Aaron Cowen, who "pitched" the idea to a large group of hedge fund managers who were sitting in on a secret meeting.

After reading the story, the FBI launched an investigation (that ended up going nowhere).

But at the time, Cowen was said to be planning to make a "career trade" of shorting the Euro, and his plan was said to be an idea that everyone else in the meeting strongly agreed upon.

The article made all hedge fund managers look very conniving, but it named a few (including David Einhorn, who later slammed the Wall Street Journal's paranoid yellow journalism) and made them look especially evil. Because he was the man with the plan, and because he's one of Steve Cohen's top men, Cowen was one of them.

steve-cohen

At the time SAC's position on the Euro was (and still is) unclear.

But the article likened Cowen's trade to George Soros' career bet against the pound. (Soros famously "broke" the pound in 1992.)

So imagine our surprise when we found out that Cowen has left SAC and moved to Soros' shop, Soros Fund Management.

The news that he joined Soros Fund on November 29th as a portfolio manager was just reported in Hedge Fund Alert, which said that Cowen wanted to start a hedge fund, but didn't get much enthusiasm from investors.

Here's how the publication describes Cowen:

His main responsibility was picking stocks for the portfolio that SAC founder Steve Cohen personally manages. To that end, he vetted ideas from SAC’s 100-plus portfolio managers and ran a team of about 20 analysts assigned to Cohen’s book, which typically represents 10-15% of the firm’s overall assets...

Cowen’s departure from SAC appears to be unrelated to the news last week that the firm had received a subpoena as part of a sweeping insider-trading probe.



Read more: http://www.businessinsider.com/aaron-cowen-sac-soros-euro-2010-12#ixzz16uV7O9bg

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