Steve Cohen’s Point72 Asset Management is gearing up to launch a new hedge fund focused on artificial intelligence (AI) stocks. The fund aims to raise around $1 billion and will target AI hardware and semiconductor companies globally.
According to sources familiar with the matter, the fund will take both long and short positions on AI-related stocks. This new venture marks Point72’s first hedge fund launch in decades, adding to its existing main hedge fund and venture capital vehicles.
Steve Cohen, the billionaire investor behind Point72, is bullish on the transformative potential of AI. He believes that AI has the power to revolutionize businesses, leading to significant winners and losers in the market. Cohen sees parallels between the current AI wave and the tech boom of the 1990s, which gave rise to some of the best companies of that era.
The new fund, to be managed by portfolio manager Eric Sanchez, is expected to debut later this year or in early 2025. It will attract investments from external sources, Point72 employees, and Cohen himself, who will also be actively involved in overseeing the fund. Unlike Point72’s main fund, which is market-neutral, the new hedge fund will have a more flexible mandate, allowing for longer-biased positions.
In recent years, Point72 has expanded its investment offerings to include private equity and venture capital arms. In 2021, the firm launched Hyperscale, a private equity fund utilizing AI to enhance operational efficiencies in acquired companies. Additionally, Point72 Ventures, founded in 2016, focuses on early-stage investments in tech startups using Cohen’s personal capital.
With the impending launch of this AI-focused hedge fund, Point72 looks to capitalize on the growing trend of AI adoption in businesses worldwide. As technology continues to reshape industries, investors like Cohen are positioning themselves to benefit from the potential disruption and innovation AI brings to the market.
