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Billionaire Steve Cohen’s Point72 Readies New Hedge Fund Targeting AI artificial intelligence Stocks seeking to raise about $1 billion for a new stock-picking hedge fund focused on artificial intelligence will bet on and against AI artificial intelligence hardware and semiconductor companies globally and will be the firm’s first new hedge fund in decades : Cohen has said he expects the impact of AI artificial intelligence to be “transformational” and that it has the power to change how companies work and save them millions of dollars “There’s going to be big winners and big losers” “when you have technological change like this, it sort of reminds me of the ’90s where the best new companies came out of that period” Point72, which managed $33.9 billion as of April : Point72 launched Hyperscale, its first private equity fund that uses AI artificial intelligence to modernize and improve efficiency at companies it acquires. The firm also has Point72 Ventures, which was founded in 2016 and invests only Cohen’s cash in early-stage tech startups---- generative artificial intelligence ---

🔍 Insights from the Intersection of Hedge Funds and Venture Capital Interesting developments are underway within the VC sphere. 🧐 I recently learned about how hedge funds are adapting to the market's downturn following their active involvement in tech dealmaking during the pandemic. 💡 Here's the idea: Hedge funds are now selling startups in secondary markets, indicating a significant shift. Their involvement, primarily through combined public and private funds, faces challenges as LPs seek capital withdrawals. One example is Tiger Global Management, known for its origins in hedge funds, has been actively trying to sell its assets since the start of this year. Unlike public stocks, exiting private investments create difficulties for hedge funds. Some are adopting temporary financial strategies like loans against future sales to mitigate cash-flow issues. This shift bears implications for late-stage startups' fundraising landscape. Hedge funds' potential exit might impact these companies seeking capital. 🧠 Read more about this evolving landscape for a deeper dive into these complex market dynamics: https://t.ly/gF8xR

Many Hedge Funds entered the VC industry during 2020 and there has been a huge change in strategy for many firms. We broke this down in our new SimpMe blog below! Check it out at the link below. Making Complex Simple 🧠🧠🧠 https://lnkd.in/emruuDeE

For startup hedge funds, the mantra seems to be "go big or go home." ⭐Nick Laster's Lykos Global, backed by his Soros Fund Management experience. ⭐JCAP, led by the 30-year-old quant Joseph Choi. ⭐LuminArx Capital Management, ex-Blackstone folks offering diverse investments across asset classes, industries and geographies. ⭐Obion Capital Management, led by David Hobbs and Keith Weiner. ⭐Freestone Grove, ex-Citadel and BlackRock veterans looking to create a multimanager platform, aiming for a colossal $4 billion raise. Bigger funds seem to be the new trend, attracting investors seeking diverse strategies. But launching big means high costs for talent and tech. The race for scale isn't without hurdles. High costs for talent, compliance, and tech are giving startups pause. But those who dare to break through are winning big in attracting top talent. Exciting as mega launches are, they have their trade-offs. More capital means more fees, but it can limit flexibility and investment options. The hedge fund landscape is changing, with fewer launches and PMs who may have gone off on their own taking multimillion-dollar contracts with the likes of Citadel, Millennium, and other multi-manager platforms. #hedgefunds #investmentmanagement #assetmanagement #alternativeinvestments

Pershing Square's Shift to Permanent Capital Mirrors Buffett's Influence Bill Ackman, the founder of Pershing Square, draws inspiration from Warren Buffett's career as he implements a long-term investment strategy at his hedge fund. With nearly 90% of its $18.7 billion assets in permanent capital, Ackman aims to foster stability and focus, free from the pressures of short-term investor withdrawals. Ackman is launching Pershing Square USA Ltd., a closed-end fund designed to replicate the successful model of Pershing Square Holdings, a $15 billion closed-end fund trading in Europe, and potentially lead to an IPO of his management company. This strategic move reflects his pursuit of long-term stability, similar to Buffett's approach. The roadshow for Pershing Square USA Ltd. targets investors valuing stability and the benefits of a closed-end fund structure. Ackman believes this model offers better investment decisions and improved returns over time, contrasting with the volatility and short-term pressures of traditional hedge funds. # Thank you Hiroki Tanaka for your submission!

𝗛𝗲𝗱𝗴𝗲 𝗙𝘂𝗻𝗱𝘀 𝗳𝗹𝗼𝗰𝗸 𝘁𝗼 𝘁𝗲𝗰𝗵 𝘁𝗶𝘁𝗮𝗻𝘀: 𝗠𝗶𝗰𝗿𝗼𝘀𝗼𝗳𝘁 𝗹𝗲𝗮𝗱𝘀 𝘁𝗵𝗲 𝗽𝗮𝗰𝗸⁣ ⁣ Hedge funds, managing a record-breaking $4 trillion in assets in 2023, are showing renewed interest in the market, particularly in the realm of technology. This analysis dives into the most popular stocks held by hedge funds based on recent 13F filings.⁣ ⁣ 𝗠𝗶𝗰𝗿𝗼𝘀𝗼𝗳𝘁 𝗧𝗮𝗸𝗲𝘀 𝘁𝗵𝗲 𝗖𝗿𝗼𝘄𝗻:⁣ Microsoft reigns supreme, with a staggering 874 hedge funds holding its stock.⁣ This tech giant's growing focus on Artificial Intelligence (AI) is attracting significant investor attention, with its share price surging over 20% in 2024 (as of June 24th).⁣ ⁣ 𝗕𝗶𝗴 𝗧𝗲𝗰𝗵 𝗗𝗼𝗺𝗶𝗻𝗮𝘁𝗲𝘀:⁣ Following Microsoft, tech giants like Amazon, Alphabet, and Nvidia are widely held by hedge funds.⁣ ⁣ Apple, with 36% of hedge funds invested, has seen the largest net increase in shares added to portfolios this quarter. Anticipation of Apple's upcoming AI advancements in iPhones is driving this growing interest.⁣ ⁣ 𝗦𝗵𝗶𝗳𝘁𝗶𝗻𝗴 𝗦𝘁𝗿𝗮𝘁𝗲𝗴𝗶𝗲𝘀:⁣ Interestingly, hedge funds have reduced their holdings in Nvidia and Alphabet (net basis). Notable hedge fund manager Michael Burry is among those who sold Alphabet shares, alongside Amazon.⁣ ⁣ 𝗧𝗲𝗰𝗵'𝘀 𝗔𝗜 𝗔𝗽𝗽𝗲𝗮𝗹:⁣ The significant role of big tech companies in driving stock market gains has led hedge funds to increase their exposure to AI-related companies over the past year. A separate Goldman Sachs analysis revealed a record high of 20% net hedge fund investment value concentrated in the "Magnificent Seven" tech companies as of August 2023.⁣ ⁣ 𝗕𝗲𝘆𝗼𝗻𝗱 𝗧𝗲𝗰𝗵:⁣ While tech giants dominate, several hedge funds hold shares in established financial institutions like Visa, JPMorgan Chase & Co., and Berkshire Hathaway. These companies have delivered strong returns over the past decade, with Visa averaging nearly 19% annually and JPMorgan Chase & Co. exceeding 16%.⁣ ⁣ 𝗧𝗵𝗲 𝗧𝗮𝗸𝗲𝗮𝘄𝗮𝘆:⁣ Hedge funds show a clear preference for technology stocks, with a particular focus on companies driving the future of AI. While tech giants reign supreme, established financial players continue to hold a place in some hedge fund portfolios.⁣ ⁣