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"One
of my biggest worries is that there are so many players out
there trying to do similar strategies," Cohen said Monday,
speaking at the Milken Institute Global Conference in Los
Angeles.
"If one of these highly levered players had a rough run and took
down risk, would we be collateral damage?" Cohen said. "In
February we drew down 8 percent which for us is a lot. My worst
fears were realized."
Point72 has rebounded to a return of approximately zero for the
year, according to a person familiar with the situation.
Cohen also commented on the hedge fund industry's relatively
large size and meager recent returns, saying that both investors
and their clients were willing to tolerate lower performance.
"When this business started, guys took pride in the returns that
they generated. Guys would make 20, 25, 30 percent," said Cohen,
known for generating similar returns himself. "Now it's about
trying to figure the intersection between assets under
management and what investors would be willing to accept."
The Hedge Fund Intelligence Americas Global Equity index, an
industry benchmark, fell 3.2 percent in the first quarter of
2016. The index gained just 0.56 percent in 2015.
Cohen's presence at the Milken event reflected a newfound
openness for an investor who generally avoids media interviews.
The public appearance was his third this spring - including
events organized by Evercore and the Marine Corp Law Enforcement
Foundation - after doing virtually nothing since attending the
SkyBridge Alternatives Conference in May 2011.
Cohen famously founded and ran SAC Capital Advisors, one of the
most successful hedge fund firms ever.
Stamford, Connecticut-based Point72 is the so-called family
office that succeeded SAC, which pleaded guilty to fraud in 2013
and paid $1.8 billion in criminal and civil settlements with
U.S. authorities.
It was also forced to return outside capital, although a more
recent settlement with regulators would allow Cohen to again
manage other people's money starting in 2018 should he so
choose.
Cohen did not address the firm's regulatory history in his
remarks and no questions from the audience or media were
allowed.
(Reporting by Lawrence Delevingne; Editing by Sandra Maler and
Kenneth Maxwell)
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