Point72 Asset Management

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Point72 Asset Management
TypeL.P., Private
IndustryHedge Fund.[1][2][3]
Founded1992 (converted from SAC Capital Advisors in 2014)
FounderSteven A. Cohen
Headquarters72 Cummings Point Road,[4] Stamford, Connecticut, United States[5]
Key people
  • Steven A. Cohen (Chairman, CEO, and President)
  • Mark Brubaker (Chief Technology Officer)
  • Harry Schwefel (Co-CIO)
AUMUS$ 17.2 billion
(as of July 1, 2020)[6]
OwnerSteven A. Cohen
Number of employees
1,500 (2020)
SubsidiariesEverpoint, Cubist Systematic Strategies, Point72 Ventures, Cohen Private Ventures
Websitepoint72.com

Point72 Asset Management, L.P., is an American hedge fund. SAC Capital Advisors was founded in 1992 and converted its investment operations to the Point72 Asset Management family office in 2014.[7] In 2018, the firm reopened to external investors after a two-year ban and began accepting outside capital.[5] As of 2020, Point72 employs approximately 1,500 people. Point72 has its main office in Stamford, Connecticut, and there are several satellite offices around the world.[8]

History[edit]

2014 S.A.C. Capital converts to Point72[edit]

Point72 was founded in 2014 as the successor to S.A.C. Capital, after the firm pleaded guilty to federal insider trading charges and paid a $1.8 billion fine.[9] In March 2014, S.A.C. Capital transferred the bulk of its assets to Point72 and was placed in "run-off," or a winding down of its operations. During this transition, Point72 launched a program a firm spokesperson referred to in a Wall Street Journal article as "the first phase of its transformation and renewal."[10][11]

In the wake of the government's criticism of S.A.C.'s compliance program, Point72 enacted a series of reforms to bolster internal compliance. Former federal prosecutor Vincent Tortorella was hired to fill a newly created role of chief surveillance officer, and former U.S. Attorney for Connecticut, Kevin J. O’Connor, was hired to serve as Chief Counsel.[12] A specialized surveillance unit, composed of ex-CIA, FBI and SEC investigators,[13] was created to emphasize the need for compliance by traders, and in 2014, the firm retained Palantir Technologies, Inc., a Central Intelligence Agency-backed software maker to provide a new tool for compliance and surveillance.[14] O’Connor left Point72 in 2019 and Tortorella assumed the role of General Counsel.[15] During this time, Point72 adopted other software programs designed to bolster internal compliance.[16]

In August 2014, founder Steven Cohen replaced many of the management personnel who had operated S.A.C. Among the changes, he named a new president of Point72, Douglas D. Haynes, and a new chief operating officer, former IBM executive Timothy Shaughnessy.[17][18] Shaughnessy retired in 2018 and was replaced by Gavin O'Connor, who joined the firm from Goldman Sachs.[19]

In 2015, the firm launched the Point72 Academy, an internship program to train new employees according to its mission and values. Point72 describes the program as an effort to build a stronger internal culture.[8][20][21]

There are satellite offices in New York City, Hong Kong, Tokyo, Singapore, London, Paris, Sydney, and Palo Alto.[22]

In August 2020 the firm closed to new money with just over $17 billion under management.[23][24][25]

Business Lines[edit]

Point72 & EverPoint[edit]

The firm's long/short investment divisions are Point72 Asset Management and EverPoint Asset Management. EverPoint Asset Management headquartered in New York operates a stock trading portfolio.[4] Point72 folded its big data unit into its Market Intelligence team in 2018.[26] In 2018 Point72 had 125 portfolio managers and around 1,000 employees.[27]

Point72 Ventures[edit]

In 2016, Steve Cohen established Point72 Ventures, a venture capital fund that makes early-stage investments in Asia, Europe, Central America, and the United States.[28] Point72 Ventures now invests in fintech, machine learning, artificial intelligence, cyber-security and core-enterprise companies.[29][30] Matthew Granade, the head of Point72’s Market Intelligence unit and a former co-head of research at Bridgewater Associates, is the Managing Partner at Point72 Ventures.[31] As of 2019, the fund is composed of about 15 employees, and its investments typically range from $500,000 to $15 million.[28][32] Pete Casella leads Point72 Ventures-Fintech, Dan Gwak and Sri Chandrasekar lead Point72 Ventures-AI, and David Dubick and Noah Carr lead Ventures’ third sleeve, Point72 Ventures-Core Enterprise.[33]

Cubist Systematic Strategies[edit]

Cubist Systematic Strategies is its quantitative investing business.[4] The name was chosen as a reference to cubist art; the New York Times reported that "Cohen is a well-known art collector".[4]

Legal[edit]

The New York Times reported that Point72 President Douglas D. Haynes who was hired as managing director for human capital and then became President resigned in March 2018 "amid [a] gender bias lawsuit" and was replaced as president by Cohen.[27][34]

The firm has faced multiple lawsuits from employees alleging gender and pay discrimination.[35][36][37][38][39][40] In September 2020 Point72 settled a gender/pay discrimination suit brought by Lauren Bonner the former Head of Talent Analytics.[41][42]

References[edit]

  1. ^ Kishan, Saijel (October 22, 2015). "Point72's Haynes Says 'Cost of Being Excellent' Keeps Going Up". Bloomberg. Archived from the original on January 11, 2016. Retrieved January 7, 2016.
  2. ^ point72.com. Homepage Archived 2016-03-05 at the Wayback Machine. Accessed 2016-03-01.
  3. ^ Kate Kelly. The second coming of Steven Cohen Archived 2017-10-21 at the Wayback Machine. CNBC. 2016-01-11. Accessed 2016-03-01.
  4. ^ a b c d Goldstein, Matthew (11 March 2014). "After Scandal, a New Name for SAC: Point72". New York Times (DealBook). New York, N.Y., United States. The New York Times Company. p. B5. Archived from the original on 6 December 2019. Retrieved 6 December 2019.
  5. ^ a b Goldstein, Matthew; Kate, Kelly (25 December 2017). "Steven Cohen Plans a New Hedge Fund. Investors Are Wary". New York Times (Business). New York, N.Y., United States. The New York Times Company. p. B1. Archived from the original on 27 May 2019. Retrieved 12 June 2019.
  6. ^ "About72". United States. Archived from the original on 2020-04-19. Retrieved 2020-08-27.
  7. ^ "Steven A. Cohen - Point72 Asset Management". Point72 Asset Management. Archived from the original on 2017-04-28. Retrieved 2017-04-27.
  8. ^ a b Foxman, Simone (March 10, 2015). "Cohen's Firm said to hire 30 seeking edge in public data". Bloomberg. Archived from the original on 2017-02-25. Retrieved 2017-03-11.
  9. ^ Protess, Ben; Lattman, Peter (4 November 2013). "After a Decade, SAC Capital Blinks". New York Times (DealBook). New York, N.Y., United States. The New York Times Company. p. B1. Archived from the original on 6 November 2013. Retrieved 6 November 2013.
  10. ^ Copeland, Rob (April 7, 2015). "Steve Cohen's Investment Firm Appoints New Paid Advisory Board". Wall Street Journal. Archived from the original on March 25, 2016. Retrieved March 11, 2017.
  11. ^ Beeson, Ed (June 27, 2014). "SAC Capital To Dissolve Adviser Business In SEC Settlement". Law 360. Archived from the original on March 25, 2016. Retrieved March 17, 2016.
  12. ^ Burton, Katherine (April 8, 2014). "Cohen hires Tortorella as Surveillance Chief for Point72". Bloomberg. Archived from the original on 2016-04-10. Retrieved 2017-03-11.
  13. ^ Goldstein, Matthew (15 December 2014). "Steven Cohen Seeks Ex-F.B.I. Agents to Join His Investment Firm". New York Times (DealBook). New York, N.Y., United States. The New York Times Company. p. B1. Archived from the original on 30 September 2019. Retrieved 6 December 2019.
  14. ^ Kishan, Saijel (March 19, 2014). "SAC retains Palantir to Boost Surveillance After Charges". Bloomberg. Archived from the original on 2016-04-08. Retrieved 2017-03-11.
  15. ^ Parmar, Hemaxi (October 27, 2020). "Point72's O'Connor to Exit After Helping Cohen on Legal Woes" (Securities Law News). United States: Bloomberg Law. Bloomberg L.P. Retrieved November 5, 2020.
  16. ^ Bit, Kelly (June 9, 2014). "Cohen's Point72 Bans Instant Messaging for Some Managers". Bloomberg. Archived from the original on 2016-04-08. Retrieved 2017-03-11.
  17. ^ Goldstein, Matthew (6 May 2015). "Point72 Hires Ex-Prosecutor as General Counsel". New York Times (DealBook). New York, N.Y., United States. The New York Times Company. p. B9. Archived from the original on 6 December 2019. Retrieved 6 December 2019.
  18. ^ Burton, Katherine (May 20, 2015). "IBM's O'Shaughnessy Hired as COO by Point72". Bloomberg. Archived from the original on 2016-03-25. Retrieved 2017-03-11.
  19. ^ Hall, Phil (September 20, 2018). "Two new executives named at Point72". Daily Voice. Archived from the original on April 16, 2019. Retrieved April 24, 2019.
  20. ^ Soule, Alexander (April 23, 2015). "Investment "academy" to debut at Point72". Stamford Advocate. Archived from the original on April 9, 2016. Retrieved March 28, 2016.
  21. ^ Shen, Lucinda (March 11, 2016). "Some First-Year Hedge Funders Would Top The Best Paid Jobs List". Fortune. Archived from the original on October 27, 2020. Retrieved March 28, 2016.
  22. ^ Shapiro, Jonathan (January 25, 2019). "Why Point72, one of the world's top hedge funds, is setting up in Sydney". Financial Review. Archived from the original on April 16, 2019. Retrieved April 24, 2019.
  23. ^ Picker, Leslie (Jul 30, 2020). "Steve Cohen's Point72 closing to new money". CNBC. Archived from the original on August 11, 2020.
  24. ^ McDonald, Michael (July 29, 2020). "Steve Cohen's Point72 Closing to New Money After Raising $10 Billion". Bloomberg. Archived from the original on 2020-09-25.
  25. ^ "Point72 closing to new money after raising $10 billion". Pensions & Investments. 2020-07-30. Archived from the original on 2020-09-15. Retrieved 2020-09-03.
  26. ^ Foxman, Simone (March 5, 2018). "Steve Cohen revamps Point72 data group after early stumble". Bloomberg. Archived from the original on 2018-09-06. Retrieved 2018-09-05.
  27. ^ a b Goldstein, Matthew; Silver-Greenberg, Jessica (17 March 2018). "President of Steven Cohen's Investment Firm Quits Amid Gender Bias Lawsuit". New York Times. New York, N.Y., United States. The New York Times Company. p. A19. Archived from the original on 28 May 2020. Retrieved 6 December 2019.
  28. ^ a b Wille, Klaus (April 18, 2018). "Steve Cohen Heads East to 'Swing Big' With Venture Investments". Bloomberg. Archived from the original on 2019-04-03. Retrieved 2019-04-03.
  29. ^ "Point72, the firm investing hedge fund mogul Steven A. Cohen's personal wealth, gets into healthcare". TechCrunch. Retrieved 2020-09-14.
  30. ^ "Can Steve Cohen Fix America's Health Care Problem?". Institutional Investor. Retrieved 2020-09-14.
  31. ^ DeFrancesco, Bradley Saacks, Dan. "POWER PLAYERS: Meet the alt-data leaders at big-name investors like Point72, Bridgewater, and Man Group". Business Insider. Archived from the original on 2020-09-07. Retrieved 2020-09-14.
  32. ^ Schott, Paul (July 15, 2018). "Cohen-backed venture capital firm eyes emerging technologies". Stamford Advocate. Archived from the original on April 3, 2019. Retrieved April 3, 2019.
  33. ^ Levy, Rachel (May 15, 2017). "Billionaire Steve Cohen hired 2 investors from the CIA's secretive VC fund for a new Palo Alto office". Business Insider. Archived from the original on April 3, 2019. Retrieved April 3, 2019.
  34. ^ English, Carleton; DeGregory, Priscilla (2019-07-03). "Hedgie claims misogyny accusations made him 'unemployable'". New York Post. Archived from the original on 2020-10-20. Retrieved 2020-09-03.
  35. ^ Zweben, Leslie Picker,Dawn Giel,Jen (2018-06-11). "The woman suing Point72 and Steve Cohen speaks out about alleged gender and pay discrimination". CNBC. Archived from the original on 2020-08-31. Retrieved 2020-09-03.
  36. ^ Schott, Paul (2018-10-02). "Point72 gender-discrimination lawsuit moves to arbitration". StamfordAdvocate. Archived from the original on 2020-08-14. Retrieved 2020-09-03.
  37. ^ Schott, Paul (2019-10-13). "Point72 discrimination case clouded by uncertainty". CTInsider.com. Archived from the original on 2019-11-02. Retrieved 2020-09-03.
  38. ^ "Wigdor LLP Files Gender Discrimination Lawsuit Against Point72". Wigdor LLP. 2018-02-13. Retrieved 2020-09-03.
  39. ^ Silver-Greenberg, Jessica; Goldstein, Matthew (2018-02-12). "Steven Cohen's Investment Firm Accused of Hostility to Women". The New York Times. ISSN 0362-4331. Archived from the original on 2020-09-17. Retrieved 2020-09-03.
  40. ^ Kolhatkar, Sheelah. "Lauren Bonner, the Face of #MeToo on Wall Street, Is Still Reporting to Work Every Day". The New Yorker. Archived from the original on 2020-08-06. Retrieved 2020-09-03.
  41. ^ Chung, Juliet (2020-09-17). "Steve Cohen's Point72 Settles With Female Employee in Gender Discrimination Arbitration". Wall Street Journal. ISSN 0099-9660. Archived from the original on 2020-09-18. Retrieved 2020-09-18.
  42. ^ Goldstein, Matthew (2020-09-18). "As Steve Cohen Closes In on Mets, Discrimination Claims Cast a Shadow". The New York Times. ISSN 0362-4331. Archived from the original on 2020-09-19. Retrieved 2020-09-19.

External links[edit]