It could be argued that the hedge fund manager, Steve Cohen has had a rough few years. However, the billionaire remains a billionaire and will once again be able to manage outside money in two years time and can look at about $1 billion in artwork until then, and his tattooed pig.
Cohen secures Morgan Stanley loan with massive art collection as collateral
Is Mr. Cohen looking forward to another upcoming auction to add to his already impressive art collection? It’s not terrifically unique for art collectors to look for lines of credit to make impulse purchases that require a fair amount of capital. Deutsche Bank reined in Cohen’s line of credit in an effort to sever ties to the presently “disgraced” former head of SAC Capital Advisors.
That hardly bothered the collector as Goldman Sachs quickly rushed in to fill the gap in 2014 left by Deutsche Bank. And frankly, with Cohen’s Point72 Asset Management just two years away from being able to manage outside money, he might like the disassociation from a lender that has its own legal problems.
At this year's SALT New York conference, Jean Hynes, the CEO of Wellington Management, took to the stage to discuss the role of active management in today's investment environment. Hynes succeeded Brendan Swords as the CEO of Wellington at the end of June after nearly 30 years at the firm. Wellington is one of the Read More
The personal loan that he secured with some combination of works by Pablo Picasso, Damien Hirst, Jeff Koons and others will afford the billionaire a bit more freedom if he chooses to add to his collection, as first reported by Matthew Goldstein of The New York Times.
Cohen and Point72 Asset Management
Following the “disgrace” of SAC’s settlement to the tune of $1.8 billion for insider trading and outside money ban, Steven Cohen seems to be doing just fine. The $11 billion “family” office was “highly profitable” in 2015 for both the billionaire and the staff of nearly 1000 that manages his staggering personal wealth. A source familiar with the matter told ValueWalk that the firm was up approximately 8.5% in 2015. In it’s first year of operation, the company showed a profit of over $2.5 billion and very recently announced that it would be opening a London office that is expected to employ an additional 70 people when it’s at its peak.
Not surprisingly, a Morgan Stanley spokesperson had zero interest in discussing the details of the loan or speak to it at all. Cohen, who recently settled a civil suit with the SEC, also declined to comment. However, he’s surely laughing a bit as the SEC was after a lifetime ban for Cohen after SAC saw many traders convicted of insider trading. Cohen, at the same time, is just a couple of years from once again handling outside money and never admitted to wrongdoing.
Not unlike his hedge fund work, Cohen makes money with his art. Just last November, Cohen sold a painting by Andy Warhol of Mao Zedong for 30 million more than he purchased it less than a decade ago.
Below readers can find the full loan agreement.