Point72, Led by Steve Cohen, Prepares New Hedge Fund for AI Stocks
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Point72 Asset Management Plans New AI-Focused Hedge Fund
Point72 Asset Management, managed by Steve Cohen, is preparing to launch a new hedge fund dedicated to stock-picking, with a focus on artificial intelligence (AI). According to insiders, the firm aims to raise about $1 billion for this venture. The fund will engage in both long and short positions on global AI hardware and semiconductor companies, representing Point72's first new hedge fund in decades.
Fund Strategy and Market Outlook
The new fund will be managed by portfolio manager Eric Sanchez and is anticipated to commence operations either late this year or early 2025. It will receive capital from external investors, Point72 employees, and Cohen himself, who will also play a role in its oversight. Unlike Point72's main market-neutral fund, this new hedge fund will have a more flexible investment mandate, possibly including longer-biased positions typically excluded from the firm's primary portfolio.
Steve Cohen's Vision on AI
Steve Cohen has expressed strong optimism about AI's potential to revolutionize industries. In an April interview with CNBC, he described AI's impact as "transformational," predicting that it could dramatically alter corporate operations and generate significant cost savings. Drawing a parallel to the technological advances of the 1990s, Cohen believes that AI will produce both "big winners and big losers" over time.
Point72's Current Ventures
Point72 already manages a substantial portfolio that includes its main hedge fund and various venture capital vehicles. As of April, the firm managed assets totaling $33.9 billion. In 2021, Point72 launched Hyperscale, its inaugural private equity fund that targets companies for modernization and efficiency improvements through AI. Additionally, since its inception in 2016, Point72 Ventures has been investing Steve Cohen's funds in early-stage tech startups.
For now, Point72 has declined to comment publicly on the specifics of the new AI-centric hedge fund. However, insiders assure that the firm's commitment to exploring AI’s financial prospects reflects its strategy to stay at the forefront of technological advancements.
