Point72's Doug Haynes Says Volatility May Extend Into 2017by and
Says firm will take outside money only with talent to run it
Valeant has a culture and leadership crisis, Haynes says
Doug Haynes, president of Point72 Asset Management, said he sees "every indication" that a multi-year bull market in stocks has ended and volatility could continue in 2016 and possibly 2017.
"We’re not in the seventh, eighth or ninth inning" of a bull market, Haynes said Wednesday at the Absolute Return Symposium in New York. "We’re outside in the parking lot trying to wave down our Uber car."
Haynes joined the family office of Steven A. Cohen in 2014 to help rebrand the firm a year after its predecessor, SAC Capital Advisors, pleaded guilty and agreed to pay a record $1.8 billion fine to resolve U.S. insider trading claims. Cohen, who faced a possible lifetime ban on managing outside money, can resume doing so as early as 2018 under an accord with authorities.
Haynes said the firm will only raise outside capital if it has sufficient talent to manage the additional money and can continue to function ethically.
The Point72 president also said Valeant Pharmaceuticals International Inc., which has been under scrutiny for its pricing methods and ties to specialty pharmacies, has a "leadership crisis" connected to poor culture. After Valeant announced in December that its Chief Executive Officer, Mike Pearson, was being treated for severe pneumonia, the company gave control to a team of executives before appointing board member Howard Schiller as interim CEO.
"I hope for the sake of their shareholders and all their employees that they sort it out," Haynes said. Shares of Valeant have fallen about 44 percent in the past year.
A spokesperson for Valeant was not immediately available for comment.
Haynes gave a mixed appraisal of the culture at Bridgewater Associates, the hedge fund led by Ray Dalio. While he said its culture is "really strong and in some ways it’s really good," he added that its "radical honesty" has the potential to "drive really talented people away."
Haynes made his remarks after the Wall Street Journal reported that tensions existed between Dalio and top executive Greg Jensen.