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Point72: 'We are not capital constrained, we are talent constrained'

Feb 17, 2016, 21:06 IST

Wall Street Week

The big question in the hedge fund space is whether or not Steve Cohen's family-office hedge fund will open up to outside capital again.

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Speaking at the Absolute Return Symposium in New York, Point72 Asset Management's president Doug Haynes hinted at an answer.

He said that the firm will consider taking on outside money in the future if it's necessary to meet their long term goals.

"We are not capital constrained, we are talent constrained," Haynes said.

In January, the Securities and Exchange Commission said that Cohen would be barred from running outside money until 2018 as part of a settlement that he failed to supervise a former SAC Capital trader convicted of insider trading.

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That opened up a path to managing outside money again. SAC Capital had earlier returned outside investor capital and rebranded itself as Point72 Asset Management after accusations of insider trading at the firm.

Point72 manages the wealth of Cohen and some of the firm's employees. The fund has about $11 billion in assets. As a family office, the firm's growth is strictly based on returns, Haynes noted during his talk.

Last year, Point72 posted returns of 15.5%, Haynes said. To put it in perspective, the average fund fell down 3.64% in 2015, data from Hedge Fund Research shows.

He noted that they think this is going to be a difficult market environment going forward. He said that they expect some "rough" years in 2016 and possibly 2017.

"We can only keep that going if we keep performing," Haynes said.

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Point72's head of human capital Mike Butler told Business Insider recently that they've been investing heavily in talent. That's because there's been a sea-change in the industry, with investment banking classes shrinking and more young folk heading to Silicon Valley, making it difficult to hire top talent.

Haynes originally joined the firm in 2014 as the head of human capital. He's a former McKinsey director and previously worked for the CIA. Haynes was responsible for implementing a surveillance program at the fund. He's now the fund's president.

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