Point72 Asset Management Explained

Point72 Asset Management
Type:L.P., Private
Founder:Steven A. Cohen
Industry:Hedge fund[1] [2] [3]
Aum:
(as of October 1, 2023)[4]
Owner:Steven A. Cohen
Num Employees:2,800+ (2023)
Foundation:2014
Location:Stamford, Connecticut, United States[5]
Subsid:Everpoint, Cubist Systematic Strategies, Point72 Ventures, Cohen Private Ventures

Point72 Asset Management is an American hedge fund. It was founded in 2014 by Steve Cohen, after his previous company S.A.C. Capital Advisors pled guilty to insider trading charges.

In 2018, the company reopened to external investors after a two-year ban and began accepting outside capital. The company's office is located in Stamford, Connecticut.[6]

History

2014 to 2019

Point72 was founded in 2014 by Steve Cohen as the successor to SAC Capital, after the firm pled guilty to federal insider trading charges and paid a $1.8 billion fine.[7] [8] In March 2014, SAC Capital transferred the bulk of its assets to Point72 and was placed in "run-off," or a winding-down of its operations.

Vincent Tortorella was hired as chief surveillance officer, and Kevin J. O’Connor was hired as an in-house attorney.[9]

In August 2014, Douglas D. Haynes was appointed president and Timothy Shaughnessy was appointed CEO.[10] [11] Shaughnessy retired in 2018 and was replaced by Gavin O'Connor, who joined the firm from Goldman Sachs.[12]

There are satellite offices in New York City, West Palm Beach, Palo Alto, Hong Kong, Tokyo, Singapore, London, Paris, Sydney, and Warsaw.[13] [14]

2020 to present

In August 2020, the firm closed to new money with just over $17 billion under management.[15] [16] [17]

In January 2021, along with Ken Griffin's Citadel Investments, Point72 contributed $750 million to a $2.75 billion emergency bailout of Melvin Capital, a hedge fund that had incurred deep losses in the GameStop short squeeze;[18] [19] [20] Melvin Capital is run by Gabe Plotkin, a former protégé of Steven Cohen and one of the managers of SAC whose trades were investigated by the SEC.[21] [22] [23] In the first half of 2021, Point72 was reported to have lost $500 million on its investment in Melvin Capital.[24]

Gender bias lawsuits

The New York Times reported that 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.[25] [26]

The firm has faced multiple lawsuits from employees alleging gender and pay discrimination.[27] [28] [29] [30] In September 2020, Point72 settled a gender and pay discrimination suit brought by Lauren Bonner, the company’s former Head of Talent Analytics.[31] [32]

External links

Notes and References

  1. News: Point72's Haynes Says 'Cost of Being Excellent' Keeps Going Up . Saijel . Kishan . October 22, 2015 . Bloomberg . January 7, 2016 . January 11, 2016 . https://web.archive.org/web/20160111132814/http://www.bloomberg.com/news/articles/2015-10-22/point72-s-haynes-says-cost-of-being-excellent-keeps-going-up . live .
  2. point72.com. Homepage . Accessed 2016-03-01.
  3. Kate Kelly. The second coming of Steven Cohen . CNBC. 2016-01-11. Accessed 2016-03-01.
  4. News: About72. United States. en. limited. 2022-05-14. 2022-05-14. https://web.archive.org/web/20220514235226/https://www.point72.com/about/. live.
  5. News: Goldstein. Matthew. Kate. Kelly. Steven Cohen Plans a New Hedge Fund. Investors Are Wary.. 12 June 2019. The New York Times Company. Business. B1. New York Times. 25 December 2017. New York, N.Y., United States. en. 27 May 2019. https://web.archive.org/web/20190527120628/https://www.nytimes.com/2017/12/25/business/steven-cohen-sac-hedge-funds.html. live.
  6. News: Cohen's Firm said to hire 30 seeking edge in public data . Simone . Foxman . March 10, 2015 . Bloomberg . 2017-03-11 . 2017-02-25 . https://web.archive.org/web/20170225081835/https://www.bloomberg.com/news/articles/2015-03-10/cohen-s-firm-said-to-hire-30-seeking-edge-in-public-data . live .
  7. News: Steven A. Cohen - Point72 Asset Management. Point72 Asset Management. 2017-04-27. en-US. 2017-04-28. https://web.archive.org/web/20170428050843/https://www.point72.com/leadership/steven-a-cohen/. live.
  8. News: Protess. Ben. Lattman. Peter. After a Decade, SAC Capital Blinks. 6 November 2013. The New York Times Company. DealBook. B1. New York Times. 4 November 2013. New York, N.Y., United States. en. 6 November 2013. https://web.archive.org/web/20131106004334/http://dealbook.nytimes.com/2013/11/04/after-a-decade-sac-capital-blinks/. live.
  9. News: Cohen hires Tortorella as Surveillance Chief for Point72 . Katherine . Burton . April 8, 2014 . Bloomberg . 2017-03-11 . 2016-04-10 . https://web.archive.org/web/20160410004851/http://www.bloomberg.com/news/articles/2014-04-08/cohen-hires-tortorella-as-surveillance-chief-for-point72 . live .
  10. News: Goldstein. Matthew. Point72 Hires Ex-Prosecutor as General Counsel. 6 December 2019. The New York Times Company. DealBook. B9. New York Times. 6 May 2015. New York, N.Y., United States. en. 6 December 2019. https://web.archive.org/web/20191206163007/https://www.nytimes.com/2015/05/07/business/dealbook/point72-hires-ex-prosecutor-as-general-counsel.html. live.
  11. News: IBM's O'Shaughnessy Hired as COO by Point72 . Katherine . Burton . May 20, 2015 . Bloomberg . 2017-03-11 . 2016-03-25 . https://web.archive.org/web/20160325101900/http://www.bloomberg.com/news/videos/2015-05-20/ibm-s-shaughnessy-hired-as-ceo-by-point72 . live .
  12. News: Two new executives named at Point72. Phil. Hall. September 20, 2018. Daily Voice. April 24, 2019. April 16, 2019. https://web.archive.org/web/20190416004840/https://dailyvoiceplus.com/fairfield/fairfield-business-journal/fairfield/two-new-executives-named-at-point72/751660/. live.
  13. News: Why Point72, one of the world's top hedge funds, is setting up in Sydney . Jonathan . Shapiro . January 25, 2019 . Financial Review . April 24, 2019 . April 16, 2019 . https://web.archive.org/web/20190416003336/https://www.afr.com/business/banking-and-finance/hedge-funds/why-point72-one-of-the-worlds-top-hedge-funds-is-setting-up-in-sydney-20190125-h1agsj#logout . live .
  14. Web site: JPMorgan Joins Goldman, Point72 at West Palm Beach Office Tower . 2024-06-19 . Bloomberg.
  15. News: Picker. Leslie. Jul 30, 2020. Steve Cohen's Point72 closing to new money. CNBC. live. https://web.archive.org/web/20200811173411/https://www.cnbc.com/video/2020/07/30/steve-cohens-point72-closing-to-new-money.html. August 11, 2020.
  16. News: McDonald. Michael. July 29, 2020. Steve Cohen's Point72 Closing to New Money After Raising $10 Billion. Bloomberg. live. 2020-09-25. https://web.archive.org/web/20200925090436/https://www.bloomberg.com/news/articles/2020-07-29/cohen-s-point72-closing-to-new-money-after-raising-10-billion.
  17. Web site: 2020-07-30. Point72 closing to new money after raising $10 billion. 2020-09-03. Pensions & Investments. en. 2020-09-15. https://web.archive.org/web/20200915134752/https://www.pionline.com/hedge-funds/point72-closing-new-money-after-raising-10-billion. live.
  18. Web site: January 25, 2021. Citadel, Point72 Back Melvin With $2.75 Billion After Losses. Bloomberg.
  19. Web site: February 2, 2021. Steve Cohen's Point72 Raises $1.5 Billion After Melvin Capital Infusion. Bloomberg.
  20. Web site: GmbH. finanzen net. Steve Cohen's Point72 raises $1.5 billion after supporting Melvin Capital during the GameStop saga, report says. 2021-07-12. markets.businessinsider.com. en.
  21. News: Chung. Juliet. 2021-01-25. WSJ News Exclusive Citadel, Point72 to Invest $2.75 Billion Into Melvin Capital Management. en-US. Wall Street Journal. 2021-07-12. 0099-9660.
  22. News: 2012-12-19. SAC's top consumer trader draws scrutiny from U.S. authorities. en. Reuters. 2021-07-12.
  23. Web site: Fletcher. Laurence. 2021-06-22. Hedge fund that bet against GameStop shuts down. https://ghostarchive.org/archive/JEWwT . 2022-12-11 . subscription. 2021-07-12. www.ft.com. en-GB.
  24. Web site: Burton, Parmar, and Kumar. Katherine, Hema, and Nishant. July 9, 2021. Steve Cohen's Bet on Melvin Leaves Point72 Trailing Hedge-Fund Peers. Bloomberg.
  25. News: Goldstein. Matthew. Silver-Greenberg. Jessica. President of Steven Cohen's Investment Firm Quits Amid Gender Bias Lawsuit. 6 December 2019. The New York Times Company. A19. New York Times. 17 March 2018. New York, N.Y., United States. en. 28 May 2020. https://web.archive.org/web/20200528004029/https://www.nytimes.com/2018/03/17/business/point72-douglas-haynes-steven-cohen.html. live.
  26. Web site: English. Carleton. DeGregory. Priscilla. 2019-07-03. Hedgie claims misogyny accusations made him 'unemployable'. 2020-09-03. New York Post. en-US. 2020-10-20. https://web.archive.org/web/20201020173833/https://nypost.com/2019/07/03/hedgie-claims-misogyny-accusations-made-him-unemployable/. live.
  27. Web site: Zweben. Leslie Picker, Dawn Giel, Jen. 2018-06-11. The woman suing Point72 and Steve Cohen speaks out about alleged gender and pay discrimination. 2020-09-03. CNBC. en. 2020-08-31. https://web.archive.org/web/20200831023241/https://www.cnbc.com/2018/06/11/the-woman-suing-point72-and-steve-cohen-for-gender-and-pay-discrimination-speaks-out.html. live.
  28. Web site: Schott. Paul. 2018-10-02. Point72 gender-discrimination lawsuit moves to arbitration. 2020-09-03. StamfordAdvocate. 2020-08-14. https://web.archive.org/web/20200814033130/https://www.stamfordadvocate.com/business/article/Point72-gender-discrimination-lawsuit-moves-to-13275264.php. live.
  29. Web site: Schott. Paul. 2019-10-13. Point72 discrimination case clouded by uncertainty. 2020-09-03. CTInsider.com. en-US. 2019-11-02. https://web.archive.org/web/20191102110217/https://www.ctinsider.com/business/stamfordadvocate/article/Point72-discrimination-case-clouded-by-uncertainty-14515661.php. live.
  30. Web site: 2018-02-13. Wigdor LLP Files Gender Discrimination Lawsuit Against Point72. 2020-09-03. Wigdor LLP. en-US.
  31. News: Chung. Juliet. 2020-09-17. Steve Cohen's Point72 Settles With Female Employee in Gender Discrimination Arbitration. en-US. Wall Street Journal. 2020-09-18. 0099-9660. 2020-09-18. https://web.archive.org/web/20200918010844/https://www.wsj.com/articles/steve-cohens-point72-settles-with-female-employee-in-gender-discrimination-arbitration-11600375911. live.
  32. News: Goldstein. Matthew. 2020-09-18. As Steve Cohen Closes In on Mets, Discrimination Claims Cast a Shadow. en-US. The New York Times. 2020-09-19. 0362-4331. 2020-09-19. https://web.archive.org/web/20200919020706/https://www.nytimes.com/2020/09/18/sports/baseball/steve-cohen-mets-point72-discrimination.html. live.

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