market folly

Point72 Asset Management's President Doug Haynes just appeared on Wall Street Week.  Point72, of course, is Steve Cohen's latest investment vehicle after he closed SAC Capital.  While SAC managed outside money, Point72 emerged as a family office to manage internal assets.

Point72's mission statement is threefold: to be the premier asset management firm (generate highest risk adjusted returns), have the highest ethical standards, and offer the best opportunities for the brightest talent.

Haynes said that the proliferation of hedge funds has really ratcheted up competitiveness in the market and has also increased crowding.  He mentioned they looked at the amount of alpha available and over the last 20 years it's down by half.  He notes, "The cost of being excellent in the industry keeps going up."

We previously linked to how Point72 has started an academy for analysts.

Haynes said that they like the healthcare sector and retail/consumer sectors now.  He notes they're looking at the innovation pieces of the economy.

Embedded below is the video of Haynes' interview on Wall Street Week:



Be sure to also check out Donald Drapkin's appearance on Wall Street Week as well as Ricky Sandler's interview.