Steve Cohen is putting up to $250 million into a new fund managed by the start-up Quantopian, a trading platform that uses crowdsourcing to create new algorithms for investing capital.
In addition to that quarter-billion dollar investment, which will build over time if Quantopian's models generate certain returns, a venture-capital fund seeded by Cohen and some of his employees, Point72 Ventures, is investing $2 million in exchange for an equity stake in Quantopian itself.
Point72 Ventures, which will focus on technologies catering to the financial-services industry, was launched in May.
"There's a tremendous amount of information in the world right now, and if you're a portfolio manager sitting there every day, trying to process all that, that is a huge challenge," said Matthew Granade, Point72's head of market intelligence and one of the architects of the Quantopian investment. "So we're really interested in people that are helping you crunch down the information, synthesize it better, help make you more efficient in absorbing it."