Steve Cohen, the founder of US hedge fund major Point72 Asset Management, is stepping away from trading to focus on overseeing the firm he established a decade ago, including remaining actively involved in investment decisions as Co-Chief Investment Officer, according to a report by Bloomberg.
In a statement released on Tuesday, Point72 said that Cohen is “taking a break from trading his own portfolio, feeling he can have a greater impact by running the firm, driving strategic initiatives, and mentoring the next generation of talent”.
While stepping back from day-to-day trading, Cohen will continue to oversee the running of the firm alongside fellow Co-Chief Investment Officer Harry Schwefel. As of July, Point72 managed over $35bn in assets and employed more than 2,800 people globally.
Cohen started Point72 after his previous firm, SAC Capital, pleaded guilty to insider trading charges and paid $1.8bn in fines. The US Securities and Exchange Commission (SEC) also barred Cohen from managing other people’s money for two years.
Since then, Point72 has grown into a leading player in the multi-manager hedge fund space, competing with firms like Ken Griffin’s Citadel and Izzy Englander’s Millennium Management. Point72 operates with 185 investment teams globally, employing a wide array of strategies across equities, macro, and quantitative trading.
The firm has reportedly delivered strong returns so far this year with a 10% gain up to the end of August, and has also seen significant growth, nearly doubling its assets since 2021 when it managed $20bn.
The report cites an unnamed source familiar with the matter as highlighting that Cohen may return to managing an investment portfolio in the future.
Poin72 is also reportedly exploring the possibility of voluntarily returning profits to investors for the first time, which could happen after the end of the year, although the plans are still under consideration.
