Body Language Analysis at S.A.C. Capital

Mar 10, 2017
J. Webster
Comments Off on Body Language Analysis at S.A.C. Capital

How often do hedge fund representatives meet with CEOs of companies? And when they do, how often is almost their main goal to gauge their mood and or body language..? Does this still go on? Most traders don’t meet with CEOs…and most people who buy stocks when hedge funds do don’t know when they change their mind and sell a position…

At S.A.C. Capital, Steve Cohen’s former hedge fund, body language and how a CEO acted when they were asked questions was a big tell for how they’d go about investing in these companies…especially or at least one particular biotech company that more or less led to the firms’ downfall. This is about how Cohen and S.A.C. Capital were initially bullish on both Elan and Wyeth based on hopes for a Alzheimer drug’s success, but then turned negative and went short the stocks and earned $275 million in illicit profits and avoided losses…

The traders gathered up whatever crumbs they could….

Steve Cohen and Matt Maratoma planned to meet with Elan’s CEO and talk to him about their new Alzheimer drug. They had questions and wanted to see how the Elan CEO reacted…and they wanted to watch his body language…not sure how they were able to privately meet with the CEO like this…

During the meal Cohen watched…he wasn’t impressed with how the Elan CEO was acting….

There are a lot more crazy details and stories in the great book Black Edge about S.A.C. Capital and its founder Steve Cohen.

Related Posts Plugin for WordPress, Blogger...

Comments are closed.