Prominent billionaire and investment expert Steve Cohen’s firm, Point72, is in the process of creating a specialized hedge fund focused on artificial intelligence. This initiative comes in light of the recent growth in the sector, according to an insider acquainted with the plans.
Expected to launch either at the close of this year or the beginning of 2025, the new fund will concentrate on investments in AI and related hardware technologies, as relayed by the source.
Aiming to raise $1 billion in assets, contributions from Cohen and Point72 employees are anticipated, the insider noted. The proposed fund will function independently from the primary portfolio due to the distinct flexibility needed for its net exposure.
Point72 has refrained from commenting, while Bloomberg News was the first to report on this development earlier this week.
Cohen has publicly expressed his support for AI as a compelling investment trend with sustainable long-term prospects, likening it to the technology advancements of the 1990s.
The surge in AI-related stocks, particularly with major players like Nvidia surpassing a $3 trillion valuation, has driven the overall market to unprecedented highs this year. Even companies with minimal ties to AI have benefited from the increased market valuations.
Rejecting the idea of a bubble, Cohen shared his belief in the market’s ability to recognize AI’s potential for substantial enhancements in corporate performance during an interview with CNBC in April.
As the owner of the Mets, he also highlighted AI’s capacity to boost productivity across various business sectors. He indicated that Point72 managed to save $25 million by leveraging efficiencies gained from sophisticated language models such as ChatGPT.
As of April, Point72 manages nearly $34 billion in assets.
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