Steve Cohen, Chairman and CEO of Point72, speaks with CNBC on April 3, 2024.
CNBC
Billionaire investor Steve Cohen’s Point72 plans to launch a separate hedge fund focused on artificial intelligence to capitalize on the boom, according to a person close to the company’s plans.
The new long/short equity fund, which will launch later this year or early 2025, will focus on artificial intelligence and related hardware, the source said.
The firm aims to raise $1 billion, with Cohen himself and Point72 employees expected to contribute, the person added. This separate public offering will be outside the main fund due to the need for more flexible net exposure, the person said.
Point72 declined to comment. Bloomberg News First reported about a potential proposal on Tuesday.
Cohen has recently emerged as a long-term proponent of artificial intelligence. He called AI a “really resilient theme” for investment, comparing its growth to the technological advances of the 1990s.
Massive rise in shares of companies related to artificial intelligence, such as Nvidia lifted the overall market to record highs this year. Amid growing enthusiasm, the chipmaker giant has surpassed a market capitalization of $3 trillion, while any stocks tangentially related to AI have risen in value.
“I don’t think it’s a bubble. I think the markets are undervaluing some of what we… think AI is going to do for companies,” the Point72 founder said in an interview with CNBC in April.
The Mets owner emphasized the role of artificial intelligence in improving productivity in virtually every company. Cohen said his investment firm found a way to save $25 million by using large language models like ChatGPT to improve efficiency.
As of April, Point72 controls about $34 billion in assets.