Steve Cohen's Point72 Asset Management is preparing to return a significant portion of capital to investors for the first time, joining other large multi-strategy hedge funds that are capping assets after a period of rapid growth, according to a report by Bloomberg.

The report cites unnamed sources familiar with the matter, as revealing that the firm is considering returning profits to clients by the end of the year. The amount could run into billions, though the exact figure has not been finalised and plans may still change.

Hedge fund managers typically restrict new money or return cash to investors to avoid getting too big as size can pose challenges when navigating volatile markets and managing certain asset classes.

Since 2020, Point72 has raised nearly $12.8bn, and its AUM have reached a record $35.2bn. The firm has gained around 10% through August this year, adding over $3bn in profit, according to Bloomberg News. A Point72 representative declined to comment on the potential capital returns.

Point72 is joining other multi-stat peers in returning investor cash with Citadel having returned $25bn to clients since 2017, and Millennium about $38bn since 2020, though much of that has returned to the firm via a new share class.