Cohen’s Point72 Shuns New Cash With Assets at Record $32 Billion
Steve Cohen’s firm raised about $3.8 billion in the past year
It’s not the first time Point72 has halted or limited inflows
Excerpt
Originally published March 13, 2024 at 12:19pm EST
Point72 Asset Management raised roughly $3.8 billion over the past year, bringing assets to a record high, six years after founder Steve Cohen returned to the hedge fund industry.
The firm managed about $32.3 billion at the start of this year, with Cohen accounting for a third of the total. That’s more than its predecessor, SAC Capital Management, ever did in its two-decade history.
Now Point72 has decided to largely turn away new investors, in part to ensure current clients get the best possible returns, according to a person familiar with the matter. Too much capital in a strategy can sometimes hurt performance.
Cohen, the billionaire owner of the New York Mets, succeeded in attracting the fresh cash despite a difficult fundraising climate for hedge funds, as higher interest rates and a slowdown in private equity dealmaking made it more difficult for clients to deploy their money elsewhere.
Point72’s external capital has swelled from $5.8 billion since the end of 2018, the year it launched.
Cohen, 67, was banned from managing other people’s money for two years after SAC pleaded guilty to securities fraud as part of a US crackdown on insider trading. He wasn’t charged with wrongdoing. […]