Point72's new AI fund near $1.5 billion after double-digit returns, sources say
FILE PHOTO: AI (Artificial Intelligence) letters are placed on computer motherboard in this illustration taken, June 23, 2023. REUTERS/Dado Ruvic/Illustration/File Photo
HONG KONG : Steven Cohen's Point72 Asset Management's new artificial intelligence (AI)-focused fund posted a 14 per cent gain after launching just three months ago, growing the fund to nearly $1.5 billion, according to sources familiar with the matter.
Point72 Turion, which kicked off trading in October and is run by portfolio manager Eric Sanchez, was expected to reach $1.5 billion in April based on its performance and subscriptions.
At that point the fund plans to suspend taking new investors, the sources said.
In June, Bloomberg reported Point72 was seeking about $1 billion for the new fund.
The quick growth of Point72's AI fund is the latest example of market optimism about the prospects of AI.
The hedge fund that picks winners and losers in the AI supply chain rose 3.5 per cent, 4.9 per cent and 5.2 per cent in October, November and December respectively, ending 2024 up 14.2 per cent, compared to a 6.2 per cent in the Nasdaq Composite Index during the same period.
Turion is hedge fund giant Point72's first new fund in decades. Point72 currently oversees $35.2 billion with its main fund rising 19 per cent last year.
A spokesperson for Point72 declined to comment.
