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Point72 Asset Management Review

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This review was produced by SmartAsset based on publicly available information. The named firm and its financial professionals have not reviewed, approved, or endorsed this review and are not responsible for its accuracy. Review content is produced by SmartAsset independently of any business relationships that might exist between SmartAsset and the named firm and its financial professionals, and firms and financial professionals having business relationships with SmartAsset receive no special treatment or consideration in SmartAsset’s reviews. This page contains links to SmartAsset’s financial advisor matching tool, which may or may not match you with the firm mentioned in this review or its financial professionals.

Point72 Asset Management, L.P. is an investment firm that only serves one particular client type -- investment funds. This fee-only firm has hundreds of advisors managing client assets, and the firm earns its compensation from asset-based fees and performance-based fees. Point72 currently manages just a small handful of funds.

If you’re looking for a firm that serves individual clients, this may not be the firm for you. SmartAsset's free financial advisor matching tool can help. 

Point72 Asset Management Background

Formerly Stamford Harbor Capital, L.P., Point72 began its investment advisory operations in 2018. The Delaware limited partnership specifically shifted its focus to investment funds and pooled investment vehicles. The firm has offices in the U.S., Europe, Asia and Australia. Steven A. Cohen is Point72’s chairman, president and chief executive officer (CEO).

Point72 became indirectly embroiled in and hurt by a dramatic short squeeze by Reddit traders, many of whom used the Robinhood trading app, on hedge funds who had been shorting GameStock shares. That short squeeze extracted billions from hedge fund Melvin Capital, in which Point72 had invested. Point72 reportedly provided Melvin Capital with $750 million in emergency cash and lost nearly 15% from the successful short squeeze.

Point72 Asset Management Client Types and Minimum Account Sizes

Point72 primarily serves its investment funds. The firm currently manages about 19 funds, or pooled investment vehicles, according to its Form ADV. As for minimum account size requirements, Point72 minimums range from $25,000 to $25 million. 

Services Offered by Point72 Asset Management 

Point72 specializes in portfolio management services for pooled investment funds. 

Point72 Asset Management Investment Philosophy 

Point72 says in its brochure that it aims to achieve each fund’s investment objective by focusing on long/short equity, systemic and global macro investment strategies. The firm’s funds also focus on active investment strategies, leverage, commodities and cash and cash equivalents.

Point72 mainly invests in equities, secured and unsecured debt, futures, forward contracts, options, convertible bonds and preferred stock, derivative instruments, equity or fixed income related instruments and contracts for differences. The firm may also expand into cryptocurrencies: Published reports in May 2021 said Point72 was poised to make a major investment in crypto with both long/short strategies on the hedge fund side and investments with its venture capital unit, Point72 Ventures.

Point72 Asset Management Fees

Point72 doesn’t specify an exact fee schedule for its investment funds, but the firm says annual rates typically range up to 2.85%.

What to Watch Out For

Point72’s Form ADV lists two regulatory action disclosures that involved its affiliates. One of them relates to an issue in 2013 when a Point72 affiliate paid disgorgement, interest and a penalty to settle a civil complaint by the Securities and Exchange Commission.

This firm doesn't serve individual clients. To find a firm that does, consider using SmartAsset's free financial advisor matching tool.

Opening an Account with Point72 Asset Management

You can set up an account with Point72 by visiting any of the firm’s offices, or by contacting an advisor over the phone.

All information is accurate as of the writing of this article.

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How Long $1 Million Lasts in Retirement

SmartAsset's interactive map highlights places where $1 million will last the longest in retirement. Zoom between states and the national map to see the top spots in each region. Also, scroll over any city to learn about the cost of living in retirement for that location.

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Rank City Housing Expenses Food Expenses Healthcare Expenses Utilities Expenses Transportation Expenses

Methodology We weighed potential expenditures for a prospective retiree with a  $1 million nest egg to assess how many years that fund would cover in retirement in America’s largest cities.

We applied cost of living data from the Council for Community and Economic Research to adjust those national average spending levels based on the costs of each expense category (housing, food, healthcare, utilities, transportation and other) in each city. Using this data, SmartAsset calculated the average cost of living for retirees in metro areas across the U.S.

We assumed the $1 million would grow at a net annual return of 2% after inflation. Then, we divided $1 million by the sum of each of those annual numbers to determine how long $1 million would cover retirement expenses in each of the cities in our study. Cities where $1 million lasted the longest ranked the highest in the study.