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Lisa Abramowicz

Steven Cohen's Passive Aggressiveness

The hedge-fund billionaire is backing an app maker that encourages investment in exchange-traded funds.

Few people thought Steven Cohen and passive would ever appear in the same sentence. Until now.

Cohen, the hedge-fund manager who became a billionaire by actively trading and betting on stocks, is funneling money to Acorns Grow, an app maker that encourages users to regularly put their spare change in a basket of exchange-traded funds, according to a Wall Street Journal article. Most ETFs are passively managed, meaning that they simply seek to replicate the returns on an index of stocks, bonds or other assets rather than outperform a benchmark.