Why Steve Cohen's Plans Are Worrying Clients

The video discusses Steve Cohen's potential new fund and the investor concerns surrounding the proposed lock-up period of one to three years. It explores reasons for such a lock-up, including strategic execution and capital commitment. The video also highlights Cohen's flexibility in terms and his fundraising goals, which have been adjusted from earlier targets. Additionally, it covers the fee structure, including a 2.75% fee on assets and up to 30% on profits, and the market's sensitivity to these fees.

What is a lock-up period in the context of investment funds?

• A period when the fund is closed to new investors

• A period during which investors can freely withdraw their money

• A time frame when investors cannot withdraw their money without a penalty

• A phase when the fund manager cannot invest the funds

Why might Steve Cohen impose a lock-up period of up to three years?

• To allow time for executing long-term strategies

• To reduce the fund's overall size

• To ensure investors can withdraw money anytime

• To discourage investors from joining the fund

What advantage does Steve Cohen have with his own hedge fund?

• He can avoid paying any fees

• He can offer better terms to all investors

• He can withdraw his money with more flexibility

• He can guarantee profits for all investors

What is the revised target amount Steve Cohen is looking to raise for his new fund?

• Between $3 and $4 million

• Between $2 and $3 million

• Between $4 and $5 million

• Between $5 and $6 million

What is the proposed management fee for Steve Cohen's new fund?

• 2% on assets and 15% on profits

• 1.5% on assets and 20% on profits

• 3% on assets and 25% on profits

• 2.75% on assets and 30% on profits