SAC Capital's Trading Strategy?

Discussion in 'Trading' started by Billy Valentine, Jul 13, 2005.

  1. Does anyone have any idea what type of strategy Steve Cohen's firm SAC Capital is using to achieve such high performance? Do they focus on technicals, fundamentals, value, momentum, spreading, large sector bets, or automated trading systems? Are multiple strategies employed, and if so what are their time frames?

    I know that we can't be totally sure what goes on behind closed doors, but some clues must exist. It seems more difficult than ever to find an exploitable edge in today's markets, and they continue to excel.
  2. he's a value investor like buffett.
  3. Ebo


    All of the above!
    plus lotsa flow, and they pay for it.
  4. LMAO!!!
  5. Information Arbitrage.
  6. I agree. That is laughable.
  7. Forgive me for being rude earlier Bladerunner. What I was referring to is that SAC is much much larger than you might suspect. They probably do engage in some value investing, but that is a very small part of what they do. Information and order flow is at the heart of SAC's operation. They trade. A lot. SAC is also employing other strategies; commodities, fixed income, arbitrage, foreign equity among others. Another thing is that SAC is involved in a huge HMO which from what I hear has been wildly successful for them.
  8. Heard he frontruns a lot of earnings reports.

    Ofcourse, he does that with "inside information". They have a talented inhouse reasearch team that can accurately predict earnings of almost every company to a cent.
  9. Cohen was interviewed in Market Wizards III
  10. Even now in ther era of Reg. FD?
    #10     Jul 13, 2005