Steve Cohen, Point72 Founder and NY Mets Owner, on What It Takes to Be an Elite Investor or a Pro Athlete Cohen also revealed the questions he asks potential hires, including "what makes them tick" and how flexible they are.
Key Takeaways
- In a new podcast, billionaire Point72 founder Steve Cohen talks about the intangible values good investors have.
- Cohen, the owner of the MLB's New York Mets, spoke about how the level of discipline is similar to professional athletes.
- Investing at Point72 requires analysts to be in a "constant learning," he said.
This article originally appeared on Business Insider.
The employees of billionaire Steve Cohen's two companies compete in different arenas.
The New York Mets, the Major League Baseball team Cohen has owned since 2020, play their games in front of tens of thousands of fans in Queens and opposing teams' stadiums. Meanwhile, Cohen's hundreds of portfolio managers and analysts at his $35 billion hedge fund Point72 are trying to beat the market and peers at firms like Citadel, Millennium, and more every day in offices around the world.
Cohen just handed out the largest contract in baseball, signing phenom Juan Soto to a 15-year contract that could pay him up to $800 million — but he expects the mindsets of the baseball players and traders on his payroll to be similar.
No matter the situation, there are key intangibles that an individual must have, Cohen said on a Point72 podcast with the firm's co-CIO Harry Schwefel. Good investors need to be opportunistic, vulnerable, passionate, and curious, but most importantly, like great athletes, they need to be disciplined.
"The talent in this industry is exceptional," said Cohen, wearing a gray New York Mets pullover, speaking about investment management.
To outperform, it's about "doing it day in, day out, no matter how it feels, how you feel." He spoke about how he hated weekends early on in his career because he wanted to trade and compete, comparing it to baseball players who, despite having a season that spans at least six months, can't wait for Spring Training.
Because of the discipline required by high-level sports, former college athletes have become a major recruiting ground for finance firms. A 2023 Harvard Business School study found Ivy League athletes "outperform their non-athlete counterparts in the labor market."
"Athletes attain higher terminal wages and earn cumulatively more than non-athletes over the course of their careers," the study found. Athletes also attain more senior positions in the organizations they join.
Point72 is a good example: Schwefel played for Harvard's hockey team.
In the conversation between the two, Cohen also revealed the questions he asks of any potential hire. He wants to understand "what makes them tick" and also how flexible they are.
"Do they want to be right or do they want to make money?" Cohen said. People who are right are "rolled over by the markets" all the time, he said, so a good investor has to be "constantly redefining who you are."
It's why at Point72, Cohen said, "constant learning" is mandatory for any employee. Once you find the area you're passionate about, he said, you have to be fully in it, improving every day, just like an MLB player or a pro golfer.
"This is pattern recognition and knowing what you're good at," he said about investing.
"Throw your best pitch."
