Steve Cohen is a bit of an anomaly among team owners. His love of the sport makes him an advocate for the New York Mets, and his finesse with investment strategies makes him a master in the financial growth arena.
Combining these two initiatives may seem unconventional, but Cohen is just the man to make it happen. How can a hedge fund and a major league baseball team coexist? Mutual love for the game and the city is a good starting point.
Asset Management Fields a Curveball
Point72 Asset Management began as SAC Capital Advisors in 1992 and gradually transformed into a premier hedge fund under the leadership of Steve Cohen. Today, this financial guru is experimenting with his management techniques on a very different kind of asset. Utilizing his tenured and capable staff, Cohen is planning to make some major improvements to the New York Mets.
The organization has suffered in recent years due to dated technology and infrastructure. Areas for improvement have not been fully disclosed, but range from physical plant issues to scouting for new talent. Cohen is beefing up the Mets staff with his own hedge fund leadership in an effort to increase profit margins in upcoming seasons.
Stretching Specialization Efforts
Mark Brubaker, the newly appointed Chief Technology Officer, expresses enthusiasm and competence for his new role with the Mets. Under the leadership of Steve Canna as the CFO and Treasurer, the financial status of the organization is likely to improve swiftly and sustainably.
These adept managers are equally talented and versatile, able to effectively transfer their unique skill sets into this new field. It is unclear if the human resources assigned to various roles will remain on staff with the Mets after the special projects are complete, but there is virtually no risk to investors since Cohen is footing the bill for the unconventional staff changes from his personal account.
Potential Return on Investment
Investors are primarily concerned with the potential return of an investment opportunity relative to the associated risk. Strategies for analyzing the risk differ for short term investments, such as individual company stock purchases, and longer term opportunities like commercial real estate development projects. The review and process will be slightly different for each investment style and opportunity.
Measuring the investment risks and rewards associated with a major sports franchise is an entirely different operation because there are so many variables involved. Steve Cohen is taking a revolutionary approach to keep the team financially viable and give them a real chance to enter the World Series. Under the Point27 leadership strategies, both initiatives seem to be within reach.
Both sports valuations and hedge fund valuations have their own set of intricate nuances, which our team understands inside and out.