In the vast cosmos of finance and investment, one figure shines as brightly as a star - Steve Cohen
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Often dubbed as the "Michael Jordan of hedge funds," Cohen has navigated the turbulent waters of Wall Street for decades, armed with keen market insights and exceptional investment acumenAs the founder of Point72, his opinions hold significant weight, often causing ripples throughout the financial marketsRecently, amidst the technological upheaval triggered by the rise of DeepSeek, Cohen has once again captured attention with his unique perspective and unwavering stance.
The emergence of DeepSeek can be likened to a boulder thrown into a tranquil lake, creating waves that reverberate through the AI industryThe company announced groundbreaking advancements in AI model development, boasting costs significantly lower than its American counterparts
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This news hit the market like a bombshell, igniting a considerable reactionOn the very Monday after the announcement, Nvidia, the leader in AI stocks, took a hit, with its shares plummeting by 17%, pushing the entire tech stock sector into a state of panic and chaos.
However, amid this cacophony and turmoil in the market, Steve Cohen maintained a level of calm and rationality that was noteworthyHe emphatically pointed out that the significant drop in tech stocks on Monday was a misreading by the market, stemming from misleading information disseminated by individuals who had spoken without thorough researchCohen did not hold back in his critique: "There are many people who talk a lot, but have not put in the actual work," he said, describing how such comments might mislead investors and the public
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He observed that these unfounded opinions, lacking in substantial research, rapidly spread and magnified within the market, resulting in hasty decisions by investors, which in turn triggered dramatic swings in stock prices.
Cohen further elaborated on his perspectives regarding DeepSeek at the Global Alternative Investment Conference in Miami on TuesdayHe expressed that the rapid rise of DeepSeek is a substantial boon for the entire AI sectorAccording to him, DeepSeek's cost-effective technological breakthroughs are propelling the industry closer to the advent of artificial superintelligenceWith confidence, Cohen stated, "Our view is that what is happening with DeepSeek is quite optimistic, as it pushes us toward superintelligence—it's coming, and it's coming fast." To him, DeepSeek's entry into the scene is not a threat to the industry, but rather a powerful catalyst, fostering continuous innovation and progress, accelerating the grand aspirations of achieving superintelligent AI.
As time passed, market sentiments gradually leaned towards rationality
On Tuesday, Nvidia's stock experienced nearly a 9% rebound, seemingly corroborating Cohen's assertion that the market's overreactions are often fleeting, and genuinely valuable companies and technologies ultimately gain the recognition they deserve.
Cohen holds profound and far-reaching views about artificial intelligence and its implications for the marketHe remains unshaken by the short-term fluctuations in stock pricesIn his mind, AI represents a significant transformation that will fundamentally alter the way "everyone lives and how business functions." He acknowledges that the evolution of AI technology is an unstoppable historical trend that will permeate various facets of society, bringing unparalleled changes and opportunities
Thus, he refuses to let brief market disruptions shake his steadfast confidence in the AI industry.
Cohen also noted, "There will indeed be times of skepticism in the market, such as we saw yesterday, where many investors may not fully understand the stocks they hold or the rationale behind their investments." He believes that many investors lack the diligence for thorough research and analysis when making investment decisions, often just following trends or believing unverified rumorsThis form of irrational investment behavior not only can lead to personal losses but also exacerbates market volatilityHe hopes that investors will adopt a more rational and mature approach, gaining a deeper understanding of their investments to make informed decisions.
Now at the age of 68, Cohen has stepped back from the frontline of trading, focusing more on the strategic direction of Point72 and talent management
As a leading multi-strategy hedge fund, Point72 boasts 185 specialized investment teams covering various domains, including equities, macro, and computer-driven tradingUnder Cohen's meticulous leadership, Point72 has achieved remarkable success in the financial markets, becoming a trusted entity for numerous investors.
In addition to his outstanding achievements in financial investments, Cohen is also the owner of the New York Mets baseball team, demonstrating exceptional talent and leadership across diverse fieldsReflecting on his career, Cohen remarked, “I once envisioned myself at 70 still fixated on trading screens, but that wasn’t a reasonable expectation.” Today, he chooses to invest more of his time and energy into meaningful pursuits, contributing to the long-term growth of his company and the advancement of the industry.
In the midst of the market tremors caused by DeepSeek, Steve Cohen has illuminated a path for investors through his distinctive perspectives and resolute beliefs
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