With talent worth a damn becoming increasingly hard to find and not everyone looking to trade their current wardrobe for one made up entirely of fleece, the hedge fund manager is turning to outside algorithms to keep his capital warm at night:
Billionaire investor Steven A. Cohen is committing $250 million to a Boston-based investment firm that lets scientists, developers and students submit computerized investment models and then picks the most promising ones to manage the money. Quantopian, a hedge fund that makes investments with the help of algorithms submitted by thousands of would-be traders, is getting the $250 million in investment capital from Cohen's venture capital arm Point72 Ventures, the investment firm and Cohen's family office said in a news release on Wednesday. Cohen is also making an undisclosed investment in Quantopian itself...At Quantopian, some 85,000 members from 180 countries are part of an online community where anyone can submit algorithms that might be used deliver market-beating returns. Quantopian pays royalties to people who write models that are selected. A portion of Cohen's money, which is the first big chunk of outside cash that will be invested by using its members' models, will be allocated to Quantopian when certain performance targets are met.