Point72 plans to return up to $5 billion to clients, WSJ says

(Bloomberg) — Billionaire Steve Cohen’s Point72 Asset Management will return between $3 billion and $5 billion to investors after posting large profits, according to a report in the Wall Street Journal.

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The firm told clients it would return the profits in early 2025, the Wall Street Journal reported, citing people familiar with the matter. The fund, which generated about 19% in returns in 2024, will also ask clients to pay certain costs that Cohen previously covered — a change that will likely boost expenses borne by investors by a few tenths of a percentage point of assets, according to the newspaper.

Hedge fund managers tend to restrict new money and even return capital to avoid becoming too large, as this can be a challenge when navigating volatile markets and certain asset classes.

The move is more evidence of a trend in the $4 trillion industry, where the biggest players like Point72, Millennium Management and Citadel have more cash than they can manage while smaller funds are find it difficult to raise capital.

A representative for Point72 didn’t immediately respond to a request for comment outside of business hours.

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