According to an insider, Steve Cohen, a famous Wall Street financial mogul and billionaire investor, plans to launch a separate hedge fund focused on artificial intelligence under his hedge fund Point72 to take advantage of the trend. The new long-short equity fund will focus on artificial intelligence and related hardware, and is expected to debut later this year or in early 2025.

The informant added that the company's goal is to raise $1 billion, with Cohen himself and Point72 employees expected to contribute. The independent public offering will be conducted outside the main fund due to the need for more flexible net exposure. Cohen has recently shown a long-term bullish attitude towards artificial intelligence. He compares its rise to technological developments in the 1990s and calls it a “truly enduring theme” for investment.

Point72's founder said in an interview in April: "I don't think this is a bubble. I believe the market has underestimated some of the benefits we see that artificial intelligence will bring to companies."

Since last year, the soaring prices of artificial intelligence related stocks such as Nvidia (NVDA.US) have pushed the overall market to record highs this year. With enthusiasm for artificial intelligence rising, the chip manufacturing giant's market capitalization has already surpassed $3 trillion, and any stock related to artificial intelligence has experienced significant gains. On Tuesday, Nvidia's stock price continued to reach new highs, hitting $136.33. Its market cap has exceeded $3.33 trillion, making it the world's most valuable listed company, surpassing Microsoft (MSFT.US).

Cohen emphasized the role of artificial intelligence in improving productivity for almost every company. Cohen said his investment firm saved $25 million by using large language models such as ChatGPT to improve efficiency.

The well-known Point72

Point72 Asset Management, founded in 2014, was formerly known as SAC Capital Advisors, known as Wall Street's 'craziest money-making machine' that became famous in the late 1990s and around 2000. As of April this year, Point72 manages nearly $34 billion in assets.

Point72 focuses on diversified investment strategies, with strategy teams including: long-short equity strategies, systematic investment strategies, global macro hedging strategies, and institutional private investment.

Steve Cohen is the founder of Point72 and the protagonist Bobby Axelrod in the popular American drama 'Billions' is based on Cohen. Compared to the farsighted male lead in 'Billions' and his ruthless style, Cohen is just as capable. He has experienced a real tug of war between Wall Street hedge funds and the FBI, SEC, and federal courts over insider trading allegations. In 2013, the US federal court sued SAC for insider trading. Eventually, SAC was found guilty and paid a fine of $1.8 billion. However, Cohen himself was not criminally charged, but was banned from participating in the company's investment activities for five years. In March 2014, SAC was renamed Point72 Asset Management. In 2018, Cohen was officially unblocked and since then he has transformed Point72 into a hedge fund.

On October 19, 1987, the US stock market experienced a black swan event, with a daily drop of over 22%. In the wailing voice of Wall Street, Cohen used all the funds he could use to go long. On October 20, 1987, the US stock market rebounded significantly, and among all the traders of Cohen's company, only Cohen achieved significant profits, offsetting the company's losses.

In 1992, Cohen left his company and founded a company with his initials as its name. This is the later world-renowned SAC. Since then, Cohen's life has been like opening a cheat code. In 1998 and 1999, SAC created a return on investment of about 70% for two consecutive years, shocking his Wall Street counterparts, and at this time Cohen has been known as the "king of Wall Street" and become a veritable Wall Street financial giant.

In 2000, the dot-com bubble burst, but Cohen had already started to short the stock market before the crisis came. And at the beginning of the crisis, he carried out a crazy short-selling operation, which made Cohen achieve a 73% return in 2000, and he became even more famous for this feat.

Since then, the company's development has remained strong, but over the past decade, Cohen has been embroiled in a 'tug of war' with the SEC, FBI, and US justice system over insider trading. Regulatory agencies began investigating whether Cohen was involved in insider trading. In 2013, the US federal court sued SAC for insider trading. Eventually, SAC was found guilty and paid a fine of $1.8 billion. However, Cohen himself was not criminally charged, but was banned from participating in the company's investment activities for five years. In March 2014, SAC was renamed Point72 Asset Management. In 2018, Cohen was officially unblocked, and since then he has transformed Point72 into a hedge fund.