Hedge fund legend Steve Cohen might get into biotech VC
Billionaire investor Steve Cohen is reportedly putting his money into two high-risk operations: the New York Mets and private biotech companies.
According to Bloomberg, Cohen’s hedge fund, Point72 Asset Management, just incorporated a fund called Point72 Biotech Private Investments. There’s no further information available, but assuming the name accurately reflects the mission, Cohen is going to start making investments in private biotech companies.
And one can imagine why. Biotech has already broken its all-time record for IPOs in 2020, with the average offering immediately trading up about 30%. That’s been lucrative for the venture capitalists who placed private bets at companies’ earlier stages, and Cohen apparently wants in.
The risk, for Cohen and any other investor chasing biotech’s boom, is that the historically cyclical industry might already be at its peak. Biotech’s last historic year, 2015, was followed by an election-motivated crash that took years to recover from. With so much money flowing into early-stage biotech companies, there’s no guarantee 2021 won’t bring a correction.
According to Bloomberg, Cohen’s hedge fund, Point72 Asset Management, just incorporated a fund called Point72 Biotech Private Investments. There’s no further information available, but assuming the name accurately reflects the mission, Cohen is going to start making investments in private biotech companies.
And one can imagine why. Biotech has already broken its all-time record for IPOs in 2020, with the average offering immediately trading up about 30%. That’s been lucrative for the venture capitalists who placed private bets at companies’ earlier stages, and Cohen apparently wants in.
The risk, for Cohen and any other investor chasing biotech’s boom, is that the historically cyclical industry might already be at its peak. Biotech’s last historic year, 2015, was followed by an election-motivated crash that took years to recover from. With so much money flowing into early-stage biotech companies, there’s no guarantee 2021 won’t bring a correction.
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