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NEW FUND, NEW ME–STEVE COHEN LAUNCHES FUND FOR PRIVATE COMPANIES
If famed, er, infamous, hedge fund manager Steve Cohen isn’t suffering from a mid-life crisis, I don’t know who is. Buy a baseball team? Sure, he’ll give it a swing. Raise a fund for private companies? Why not. What’s next, Steve? A red Miata?
Steve Cohen will launch a new fund focused on investing in private companies that will focus on AI. We talkin’ practice? No, dumb dumb, artificial intelligence.
The new fund will be called Point72 Hyperscale, which is a branch of the hedge fund's spinoff Point72 Ventures. The venture has a goal of raising $500M to $900M, with Steve as the anchor investor, and will be run as a hybrid-VC/PE fund. This mashup will target companies with annual revenues of $10M to $200M ... so if you’re doing $9.99M annually it might be time to start using sig-figs.
So, we’re not talkin’ practice?
Through this effort, Steve plans to buy majority stakes in companies that have similar techs and then merge those investments. This, in the biz world, is what we call #synergy. Stevie isn't captaining the ship, though. Sri Chandrasekar and Dan Gwak, heads of the current AI investment unit, will be handling the day to day operations.
So let me get this straight, Steve will remain out of the windbreakers crosshairs should sh*t hit the fan, but will be allowed to reap the rewards? It’s like deja vu all over again.
The bottom line...
Steven is doing his best to put on a clinic in diversification in the year of our lord 2020. Earlier this year, Steven A. got 'this' close to purchasing the Mets for $2.3B until Fred Wilpon, the James Dolan of the MLB, managed to botch the deal. And now the AI fund.
Of course, focusing on anything besides making big boy returns at Point72, presumably via insider trading, might not be the best use of Cohen’s time. You see, the hedge fund savant pulled in an estimated $1.3B in 2019.
Stock picking and fine art, that's what Steve Cohen does.
Steven A. Cohen Raising New Fund to Invest in Private Companies [WSJ]
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