As part of our Intern Speaker Series, Harry Schwefel, our Co-Chief Investment Officer, joined Jaimi Goodfriend, Head of Investment Professional Development, to speak with our summer interns about his journey to the finance industry, the importance of mentorship, and the qualities that make great investors.
Here are some highlights from their discussion:
Many of our interns here did not major in finance. You and I did not major in finance. Can you share your journey to the finance industry starting with your background and your career before joining Point72?
Sure. I went to a liberal arts college and was a government political science major. I didn’t come from a family with any background in this industry. I ended up here largely because when it came time to start exploring careers, I was intrigued by the ability to study and investigate the business aspect of Wall Street and public companies.
After college, I started in equity research because it struck me as a great place to get the foundation you can get in the Academy and learn about businesses. That’s actually where I was first exposed to Excel and terms like EBITDA and net profit. To me, the most logical commercial application of that foundation was buying and selling stocks, so I ended up on the buy-side.
You joined Point72 as a Portfolio Manager in 2008, and you’re now the Co-Chief Investment Officer. How have the skills you developed as an investor helped you grow into this leadership role?
That’s a really interesting question. When you think about someone’s investing process, there are so many aspects that you can analyze and refine—what’s working, what can be improved, and what the growth path should look like.
It’s no different than sitting in an analyst seat thinking about how to break down a business to better understand its earnings potential or valuation.
As a management team, we pay attention to what people do well and how we can help them achieve their goals. The Point72 Academy is a great example of that process in action where we help those who may arrive without a finance background build the foundational skills they need to succeed as analysts.
We want to create a perpetual growth opportunity for everybody that works here and for it to be a great culture and a great place for people to learn and build their careers.
Let’s talk about that—nobody achieves their goals overnight; it takes time. This firm has been evolving its development initiatives since 2012, even before I joined. Why do you think we’re differentiated in this area? How did we get here, and what drives this focus?
The concept of development and teaching was really born out of the firm’s collegial environment, where collaboration and continuous learning are key. We had the idea to create the time and space for newer PMs to learn from more experienced professionals, which led to the creation of Point72 LaunchPoint.
Culturally, Steve Cohen, our founder and CEO, always has the mindset of “How do we make it better?” So, the curriculum has been iterated over and over, supported by a growing alumni network of portfolio managers who are inclined to give back. That inspired us to expand our approach to training undergrads and eventually mid-career professionals to become analysts which is how the Academy came about in 2015.
What qualities do you think great investors share?
I think the people who succeed here are passionate. Much like professional athletes, you don’t make it to the top by doing it for someone else—you have to love what you do. Ultimately, you’re competing with people who truly love it, and if you don’t, it’ll be harder to go the extra mile, put in the extra hour, or bounce back from adversity. But those who love it will—and that’s when you fall behind
Another trait we’ve been reflecting on—and trying to identify and teach—is commerciality, which we think is a key driver for moving beyond simply researching names to truly monetizing coverage. The people who possess this trait can break down complex problems, figure out the pieces, recognize patterns, understand investor behavior and find a path to making money. It’s part process, part attitude, part instinct. And we think it’s really important.
Looking at our Long/Short business, what do you find compelling about this model that has kept you at the firm for over a decade?
Point72 is an investing firm where our DNA really lies in the celebration of process, discipline, and commerciality. I think that that’s interesting just because if I were in your position, just starting out in my career and thinking about what to do for a living, it’s not about the title of your first job or the firm that you may think you need to work for. It’s ultimately about the mentorship you receive and whether what you learn can be applied consistently to support your growth and development over the longevity of your career.
And we think about the Long/Short business like that. More than two-thirds of our portfolio managers are homegrown, and more than 200 Academy graduates have earned analyst roles with us. That creates an environment where you can genuinely learn from your peers.
You mentioned the importance of mentorship in a career, and we believe that Point72 has a strong mentorship culture. Can you share how you think people could find mentors here?
Steve often says, “If I was at this firm, I would be a kid in a candy store.” And the reason he says that is because I think we have a collection of incredibly talented, incredibly bright people.
When you join this firm, the expectation is that you’re smart, ambitious, creative, and commercial, but you also recognize that you’re not going to figure it all on your own. And that immediately creates the concept of a two-way street.
And so, you will find a mentor by being willing to take the risk of approaching someone you don’t know, asking thoughtful questions, and showing genuine interest in the conversation. And you’ll almost always be met with someone who gives an answer that is helpful to you and that ends up being helpful to the person being generous with their time.
I think that it’s one of the things that makes this firm special.