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Tariffs, immigration policies are among Cohen's concern
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Trump's measures could make it tougher to bring inflation
down
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Hedge fund investor said DeepSeek is a bullish event on AI
(Adds comments about markets, Point72's future plans from
paragraph 2)
By Carolina Mandl
MIAMI, Jan 28 (Reuters) - Point72 Asset Management's
founder Steven Cohen said on Tuesday that he would expect the
stock market to reach a peak soon amid inflation pressure and
uncertainties around U.S. President Donald Trump's policies on
tariffs and immigration.
Trump has threatened to impose a universal tariff on
foreign-imported goods and others aimed at specific sectors or
countries, while on the immigration front he has launched a
sweeping border crackdown.
Such measures would "actually slow growth, not increase
growth in 2025" and make it more difficult for the Federal
Reserve to tackle inflation, Cohen said at the investment
conference iConnection, in Miami.
"I don't think that's a great backdrop. In 2025, I would
expect the markets to top over the next couple of months," Cohen
said, adding that the peak may already have happened.
The S&P 500 surged over 23% last year.
Point72's founder expressed more concerns about Trump's
policies than about a rout in tech stocks on Monday triggered by
Chinese artificial intelligence startup DeepSeek, which revealed
that its model was on a par or better than industry-leading
rivals in the United States at a fraction of the cost, sending
shares in Nvidia ( NVDA ) down roughly 17%.
Asked about the selloff, Cohen said "great companies are
going to be expensive," in a comment that seemed related to
Nvidia ( NVDA ).
"There'll be new companies that will use these tools and
start hearing about that. And then another big advance comes
along and that's how it's going to come. And there are going to
be moments when people are going to doubt it like yesterday," he
told the audience of investment experts.
Cohen said AI is in the early stages of something that will
be transformational for the economy.
Point72 has a new artificial intelligence (AI)-focused fund
that posted a 14% gain after launching just three months ago,
Reuters reported earlier. The fund is expected to have raised
nearly $1.5 billion.
In a wide-ranging interview, Cohen spoke about his recent
decision to stop trading to focus on running the firm, driving
strategic initiatives and mentoring. Point72 manages $36.9
billion and has 200 portfolio managers around the world.
"I'm 68 and had this vision being 70, still behind screens.
I was like, that doesn't make sense," he added.
Among his plans for the firm, he said he believes it could
be more than a hedge fund.
"I can do more than that," mentioning as example the recent
hiring of Todd Hirsch, a former senior managing director at
Blackstone, to head a new strategy focused on the fast-growing
private credit business.