Point72’s new AI fund Turion nears $1.5 billion after 14% returns in just 3 months, pauses new investments

Steven Cohen’s Point72 Asset Management has seen remarkable early success with its new AI-focused fund, Point72 Turion. Launched just three months ago, the fund has delivered a 14% return, quickly growing its assets to nearly $1.5 billion, according to Reuters, citing insider sources. The impressive performance reflects the mounting enthusiasm in the AI space as investors channel billions into promising generative AI startups.

Point72 Turion, managed by portfolio leader Eric Sanchez, began trading in October 2024. Its rapid growth is on track to meet a $1.5 billion milestone by April, at which point it plans to pause new subscriptions, the sources told Reuters.

“Steven Cohen’s Point72 Asset Management’s new artificial intelligence (AI)-focused fund posted a 14% gain after launching just three months ago, growing the fund to nearly $1.5 billion, according to sources familiar with the matter,” Reuters reported.

Earlier in the year, Bloomberg reported that Point72 aimed to raise $1 billion for this venture, underscoring its ambitious outlook for the fund.

The fund’s returns outpaced broader market benchmarks, with monthly gains of 3.5% in October, 4.9% in November, and 5.2% in December, closing 2024 with a 14.2% overall return.

For comparison, the Nasdaq Composite Index rose just 6.2% over the same period. The fund primarily targets investments in AI hardware and semiconductor companies worldwide, a focus reflecting the integral role of these sectors in AI’s continued development.

Point72 Turion is a landmark initiative for the hedge fund giant, marking its first new fund in decades. Point72, which oversees $35.2 billion in assets, saw its main fund rise 19% in 2024. This new venture aligns with founder Steven Cohen’s belief in AI as a force capable of reshaping industries, likening its potential to the transformative technologies of the 1990s.

By adopting a flexible investment strategy that allows for longer-biased positions, Point72 Turion distinguishes itself from the firm’s primary market-neutral fund. While Point72 declined to comment on Turion’s performance, the fund’s early returns signal strong confidence in AI’s future.

This latest move by Point72 underscores the firm’s strategic bet on the growth potential within the AI sector—a decision likely to draw further attention as the race to invest in AI accelerates.