(Bloomberg) -- Steve Cohen said investors are too worried about a market downturn and that focusing too much on recession odds may cause them to miss the “big wave” of opportunities brought on by artificial intelligence.
“I'm making a prognostication — we're going up,” said Cohen, founder of hedge fund Point72 Asset Management and owner of the New York Mets, according to people who heard him speak at a private event Tuesday at Citi Field. “I'm actually pretty bullish.”
Cohen, 66, said the burgeoning field of AI will likely create new jobs.
Read More: Druckenmiller, Tepper Lead Family Offices Betting on AI Darlings
The billionaire added that he's worried about the “types of jobs that will be displaced,” but more broadly, he expects profit margins to improve, which would reduce pressure on the Federal Reserve to curb inflation with additional interest rate hikes. This would, in turn, boost markets, he said.
Cohen joins other current and former hedge fund managers who have expressed enthusiasm for AI. Duquesne Family Office founder Stan Druckenmiller and Maverick Capital's Lee Ainslie both took positions in chipmaker Nvidia Corp., a beneficiary of the AI boom, during the first quarter.
“AI is very, very real and could be every bit as impactful as the internet,” Druckenmiller said last week at the 2023 Sohn Investment Conference.
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