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Steve Cohen Knew This Whole Comeback Thing Was A Mistake

Now you do, too, although you don’t get 2.75% of $5 billion just for showing up.
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Others may have been excited about Steve Cohen’s return from Bhararian exile. The man himself was more ambivalent. Quite frankly, he didn’t really want to it at all, and if it weren’t for that goddamned tax bill, he might not have. His misgivings were not assuaged by the comically low fees he had to charge, or the insultingly short lockup period he could impose, or the rather less-than-rapturous reception he enjoyed at launch.

Then again, if anyone knew this was a mistake, it was Steve Cohen. And so it was, sort of. Don’t say he didn’t warn you.

But by the end of 2018, Point72 had made less than 1 percent for investors, according to people familiar with the matter. The fund, which started trading last spring, lost about 1 percent in October and 5 percent in November, which largely wiped out its gains for the year.

Spare Steve Cohen your pity, however. After all, the average hedge fund lost 6% last year, so save it for the many, many hedge funds that did worse than Point72 and fellow underwhelming entrant ExodusPoint Capital Management.

ExodusPoint Capital Management, which raised $8 billion and started trading in June, made about 0.6 percent in its first seven months, according to people with knowledge of the returns….

Gelband, the former bond chief at Millennium Management, had kicked off one of the most anticipated hedge fund launches in the industry, attracting investments from the likes of BlackRock Inc. and Goldman Sachs Asset Management.

On the other hand, if you see the Big Guy around, maybe don’t mention that lots of people found it pretty easy to make gobs of money last year.

DE Shaw’s $14bn Composite fund gained 11.2 per cent, according to people familiar with the matter. Two Sigma’s $9bn Absolute Return fund returned 11 per cent, while its “global macro” Compass fund notched up a 14 per cent gain in 2018….

The Renaissance Institutional Equities fund last year gained 8.5 per cent, Renaissance Institutional Diversified Alpha returned 3.23 per cent and Renaissance Institutional Diversified Global Equity made 10.3 per cent.

Hell, Ken Griffin did so well that he’s no longerregretting that Manhattan lease signed in anger.

The tower’s anchor (and thus far only) office tenant, Citadel Enterprises, has signed to add 124,000 square feet to its earlier 211,400 square feet. It’s a huge advance for the L&L project — and a joke on stories last year that claimed Citadel might change its mind about moving there from its current home at 601 Lexington Ave.

The Hedge Fund Manager Comeback That Wasn’t: Steve Cohen’s Mediocre 2018 [Bloomberg]
Hedge Funds Lost Almost 6% Last Year as Markets Roiled Managers [Bloomberg]
Gelband Hedge Fund Is Said to Make Under 1% After Biggest Launch [Bloomberg]
Renaissance joins big hedge funds in defying 2018 gloom [FT]
Citadel Hedge Fund Gains 9% in Strong Multi-Strategy Year [Bloomberg]
Citadel expands real estate in Park Ave. office tower [N.Y. Post]


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