Steven Cohen’s Point72 Asset Management launched its AI-focused fund, Point72 Turion, in October and has already posted a 14% gain in just three months. As a result, it has grown the fund to nearly $1.5 billion, according to Reuters. Led by portfolio manager Eric Sanchez, the fund was expected to reach its target of $1.5 billion by April, at which point it plans to stop accepting new investors.
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The rapid success of Point72 Turion highlights the growing market optimism around artificial intelligence. The fund, which focuses on picking winners and losers in the AI supply chain, delivered monthly gains of 3.5%, 4.9%, and 5.2% in October, November, and December, respectively. By the end of 2024, the fund’s 14.2% return significantly outpaced the Nasdaq Composite Index’s 6.2% gain over the same period.
Turion is Point72’s first new fund in decades and is a notable addition to the hedge fund giant’s portfolio. Point72 currently manages $35.2 billion in assets, with its main fund posting a 19% return last year to add to the firm’s strong performance track record.
Is SPY a Buy Right Now?
With Cohen’s new fund beating the market so far, it will be interesting to see if it can continue this streak in 2025. However, if it does outperform, the fund could have a terrific year if analyst forecasts are correct about the SPDR S&P 500 ETF Trust (SPY) performance. Indeed, the ETF, which tracks the S&P 500, has an average analyst price target of $740.66 per share, which implies almost 25% upside potential over the next 12 months.
