Steve Cohen, Chairman and CEO of Point72, speaking to CNBC on April 3, 2024.
CNBC
Billionaire investor Steve Cohen’s Point72 plans to launch a separate artificial intelligence-focused hedge fund to capitalize on the boom, according to a person familiar with the company’s plans.
The new long/short equity fund, set to launch later this year or early 2025, will focus on AI and AI-related hardware, the person said.
The company is aiming to raise $1 billion, with Cohen himself and Point72 employees expected to contribute, the person added. This standalone public equity offering will sit outside the main fund due to the need for more flexible net exposure, the person said.
Point72 declined to comment. Bloomberg News first reported the possible offer on Tuesday.
Cohen has recently emerged as a long-term AI bull. He called AI a “really enduring theme” for investment, comparing its rise to technological developments in the 1990s.
The massive rally in AI-related stocks such as Nvidia has lifted the broader market to record highs this year. The chipmaking giant has surpassed a $3 trillion market cap amid growing enthusiasm, while every stock tangentially linked to AI has seen a surge in value.
“I don’t look at it as a bubble. I think the markets are discounting some of what we … believe AI will do for businesses,” the Point72 founder said in a CNBC interview in April.
The Mets owner highlighted the role of AI in increasing productivity in virtually every organization. Cohen said his investment firm found a way to save $25 million by leveraging large language models like ChatGPT to increase efficiency.
Point72 has nearly $34 billion in assets under management as of April.
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2024-06-18 17:33:40
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