Steve Cohen's Comeback Begins to Take Shape

The transcript discusses the lifting of a ban on managing outside money for Stevie Cohen in January 2018. It covers Cohen's past legal issues, his compliance with the rules, and his potential return to managing other people's money. The discussion also touches on the reputational risks Cohen faces and the hesitance of institutional investors due to his past. Despite his good track record, Cohen remains cautious about publicly announcing his plans, possibly due to concerns about raising funds and public perception.

What does the term 'reputational risk' refer to in the context of hedge fund management?

Why might institutional investors be cautious about investing with Stevie Cohen?