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Komfie Manalo, Opalesque Asia: Steven Cohen is returning to managing other people's money in a few days, ending a two-year ban after pleading guilty to securities fraud charges and paying $1.8bn in fines and civil penalties for failing to police the action of one trader in his former hedge fund, SAC Capital.
But despite boasting of his pre-scandal reputation of consistent solid returns, investors are wary of Cohen's new hedge fund, citing reasons from higher fees, longer withdrawal time, and of course his tainted reputation, reported the New York Times.
So far, Cohen's hedge-fund-in-waiting has raised $4bn in commitments and received half of it. The fund is a far cry from the $14bn that his hedge fund office SAC Capital used to manage before it was shut down.
Powerful Wall Street institutions are taking a cautious approach, said the NY Times. JPMorgan Chase and Morgan Stanley, which will handle trades for the new firm, have not yet committed to offering their wealthy customers a chance to invest with Mr. Cohen's new fund, according to the paper.
It was reported in October that Cohen is considering charging management fees of at least 2.75 percent and may pass on certain costs to investors for the first time, people familiar with t...................... To view our full article Click here
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