In this article, we’re going to take a look at 12 stocks billionaire Steve Cohen just bought and sold.
Billionaire Steve Cohen is one of the most renowned hedge fund managers on the Street. In 1992, Cohen launched S.A.C Capital Advisors and grew its Assets Under Management from $25 million to mode than $16 billion in 2008. At one point SAC employed around 800 people. The fund’s growth was spurred by Cohen and his team’s investment acumen. SAC Capital Advisors was one of the best performing hedge funds, managing at one point to net 70% in annual returns two years in a row. Historically, between 1992 and 2013, SAC Capital’s average annual returns amounted to 30%, outperforming many other hedge funds and the market.
However, things turned to worse when in 2010, the Securities and Exchange Commission opened an investigation into SAC on insider trading allegations and several employees were indicted on insider trading charges. In 2013, the firm pleaded guilty to insider trading charges and paid more than $1.0 billion in penalties. A year later, several former employees of SAC were convicted, one of whom, Mathew Martoma was accused of running one of the largest insider transactions in history, which allegedly generated $276 million in profit. As part of a separate lawsuit in 2016, Cohen was prohibited from managing money for outside investors for two years.
In 2014, Cohen established Point72 Asset Management as a family office to manage his own capital. In 2018, two years after Cohen’s ban and the shutdown of SAC Capital Advisors, Point72 became a hedge fund that started to accept outside investors’ money. Currently, Point72 has more than $31 billion in Assets Under Management and employs more than 2,800 people, according to its website. The firm has seven offices in the US, four locations in Europe and Middle East, and five in the Asia-Pacific region. In 2022, Point72 generated a return of 10.3%, earning its investors around $2.40 billion, according to Financial Times.
Steven Cohen in addition to making a fortune estimated at almost $20 billion is also known for his rather lavish art collection. One of the exhibits in this collection is a 14-foot shark preserved in formaldehyde, designed by Damien Hirst and titled “The Physical Impossibility of Death in the Mind of Someone Living”. In 2004, Cohen purchased this artwork for $8 million. Cohen’s collection also includes or included paintings by Picasso, artwork by Andy Warhol, and others. Cohen also has several hundred millions worth of real estate in New York, Connecticut and California. In 2020, Cohen also purchased New York Mets baseball team for $2.4 billion and is currently in profit as the team’s value is currently estimated at $2.9 billion.
Now, we cannot talk about the stocks that Steve Cohen just bought and sold without going through Point72 Asset Management’s latest 13F filing. At the end of the third quarter, Point72 had an equity portfolio worth over $34 billion, which was highly diversified and included over 2,400 positions. During the period, the investor closed 600 positions and acquired more than 900 new holdings. Among the sectors the fund is focused the most on are Technology, Healthcare and Consumer Discretionary.
From the technology sector, Cohen personally seems to be fond of Artificial Intelligence businesses as he mentioned during a private conference event. That’s probably one of the reasons why Point72’s largest long position is represented by NVIDIA Corporation (NASDAQ:NVDA), followed by Microsoft Corporation (NASDAQ:MSFT), and Amazon.com, Inc. (NASDAQ:AMZN). In all three companies, Point72 increased its position during the third quarter. The fund added 2,700 shares to its position in NVIDIA Corporation (NASDAQ:NVDA) and raised its stakes in Microsoft Corporation (NASDAQ:MSFT) and Amazon.com, Inc. (NASDAQ:AMZN) by 11% and 39%, respectively. NVIDIA Corporation (NASDAQ:NVDA), Microsoft Corporation (NASDAQ:MSFT) and Amazon.com, Inc. (NASDAQ:AMZN) stand to benefit a lot from the ascension of AI and are among the 5 best artificial intelligence stocks to buy according to hedge funds.
Our Methodology
To identify which companies to include in our list of 12 stocks billionaire Steve Cohen just bought and sold we looked through Cohen’s latest and previous 13F filing and identified which companies were added to the portfolio during the third quarter, but also in which businesses the billionaire’s fund liquidated its position. We then calculated the value of these positions based on the closing price on the last day of the quarter and ranked the picks in a decreasing order of this metric..
12. Dynatrace Inc (NYSE:DT)
Value of Position: $69.65 million
Bought or Sold: Bought
Dynatrace Inc (NYSE:DT)
During the third quarter, Point72 Asset Management acquired 1.49 million shares of Dynatrace Inc (NYSE:DT), the stake being valued at roughly $69.65 million. Dynatrace Inc (NYSE:DT) provides a software observability platform that uses AI as the underlying technology. The company’s stock has appreciated by 35% since the beginning of the year amid the company beating the estimates on both top and bottom-lines for the past three fiscal quarters. For the latest quarter, Dynatrace reported EPS of $0.31 and revenue of $351.70 million, vs expectations of $0.24 and $345 million, respectively. During Dynatrace, Inc. (NYSE:DT) Q2 2024 earnings call, the company’s CFO Jim Benson said that the company was raising its revenue guidance to between $1.41 billion and $1.42 billion, which would represent a growth between 21% and 22%.
Besides Steve Cohen’s Point72 Asset Management, two other investors bullish on Dynatrace Inc (NYSE:DT) are Robert G. Moses’ RGM Capital and Panayotis Takis Sparaggis’ Alkeon Capital Management, which upped their stakes by 10% and 47% during the third quarter and currently own 3.52 million shares, and 1.89 million shares, respectively.
11. Ovintiv Inc (NYSE:OVV)
Value of Position: $97.64 million
Bought or Sold: Bought
Ovintiv Inc (NYSE:OVV) is another new addition to Point72’s equity portfolio with Steven Cohen’s hedge fund reporting the addition of 2.05 million shares valued at $97.64 million. An independent petroleum company, Ovintiv Inc (NYSE:OVV) reported a total production of 572,000 barrels of oil equivalent per day for the third quarter and 1.63 million cubic feed of natural gas per day. The company also reported net earnings of $1.47 per share and posted a dividend of $0.30 per share for the third quarter. In addition, Ovintiv Inc (NYSE:OVV) provided its full-year production guidance of 550 to 560 million barrels of oil equivalent per day and a full-year capital investment between $2.75 billion and $2.79 billion.
Ken Griffin’s Citadel Investment Group is also bullish on Ovintiv Inc (NYSE:OVV), the company representing one of the hedge fund’s biggest energy stock picks. Overall, there were 31 investors in our database bullish on Ovintiv Inc (NYSE:OVV), up from 24 funds a quarter earlier.
10. argenx SE – ADR (NASDAQ:ARGX)
Value of Position: $123.16 million
Bought or Sold: Bought
argenx SE – ADR (NASDAQ:ARGX) is a Netherlands-based global immunology company, which focuses on developing novel antibody-based medicines aimed at helping people with autoimmune diseases. Earlier this month, the company said that it had received the approval from the European Commission for subcutaneous injectable VYVGART as an addition to the standard therapy for the treatment of generalized myasthenia gravis. Since the beginning of the year, argenx SE – ADR (NASDAQ:ARGX)’s stock surged by more than 31%, mainly due to a spike in July on the back of the company reporting positive topline data from its study on a therapy for chronic inflammatory demyelinating polyneuropathy.
During the third quarter, Point72 Asset Management initiated a stake in argenx SE – ADR (NASDAQ:ARGX), by adding 250,500 shares worth $123.16 million. Billionaire Steve Cohen’s fund joined 47 other hedge funds bullish on the company as of the end of September.
9. Crinetics Pharmaceuticals Inc (NASDAQ:CRNX)
Value of Position: $125.66 million
Bought or Sold: Bought
Crinetics Pharmaceuticals Inc (NASDAQ:CRNX) saw a significant increase in popularity during the third quarter, as the number of investors tracked by Insider Monkey bullish on the company surged to 38 from 21 and the aggregate value of their holdings appreciated to $670.11 million from $303.60 million. Steve Cohen’s fund also added 4.23 million shares of Crinetics Pharmaceuticals Inc (NASDAQ:CRNX) to its equity portfolio.+
In September, Crinetics Pharmaceuticals’ stock saw a spike of more than 90% on the back of the company announcing positive phase 3 trial results for its oral therapy for acromegaly, a rare condition that causes pituitary gland to secrete excess growth hormone. Currently this condition can only be treated through surgery or monthly injections of a certain drug. Crinetics Pharmaceuticals Inc (NASDAQ:CRNX) has another drug candidate in trial for the treatment of Cushing’s disease and congenital adrenal hyperplasia with data from these studies expected in the second half of 2024.
8. Macy’s Inc (NYSE:M)
Value of Position: $125.93 million
Bought or Sold: Sold
During the third quarter Point72 Asset Management liquidated its stake in Macy’s Inc (NYSE:M), previously having reported ownership of 10.85 million shares. The fund first initiated a stake in the department store operator back in 2021. Macy’s Inc (NYSE:M) is down by 36% over the last year. Macy’s Inc (NYSE:M) reported a year-on-year revenue decline for the past four quarters as the company has been facing major headwinds and the whole department store and mall segment has been struggling over the COVID-19 pandemic. For the full 2023, the company expects revenue between $22.9 million and $23.2 billion and comparable sales decline between 7% and 6%, a slight improvement from the previous guidance. “Our sales outlook reflects our confidence in Macy’s, Inc. as a gift-giving destination, including the expected increase in beauty sales penetration, particularly fragrances,” Macy’s Inc (NYSE:M)’s CFO and COO Adrian Mitchell said during the earnings call.
There were 32 funds in our database long Macy’s Inc (NYSE:M) at the end of September, holding in aggregate $357.80 million worth of shares. Among these, Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital is the top shareholder with a $131.43 million position.
7. Hologic, Inc. (NASDAQ:HOLX)
Value of Position: $132.03 million
Bought or Sold: Bought
Our list of stocks billionaire Steve Cohen just bought and sold continues with Hologic, Inc. (NASDAQ:HOLX), in which Point72 Asset Management initiated a stake by buying 1.90 million shares. In total, there were 44 funds followed by Insider Monkey bullish on Hologic, Inc. (NASDAQ:HOLX) at the end of September, up by two over the quarter.
Hologic, Inc. (NASDAQ:HOLX) is a healthcare technology company that sells devices for diagnostics, surgery and imaging aimed primarily at women’s health. In 2013 the company was targeted by activist investor Carl Icahn, earning a spot in our list of long-term returns of Carl Icahn’s 40 activist targets. In the fiscal fourth quarter, Hologic, Inc. (NASDAQ:HOLX) recorded EPS of $0.89, topping the expectations of $0.84 and revenue of $945.30 million was $5.39 million higher than the consensus estimate.
6. ImmunoGen, Inc. (NASDAQ:IMGN)
Value of Position: $138.26 million
Bought or Sold: Sold
ImmunoGen, Inc. (NASDAQ:IMGN) is another company in which Point72 liquidated its position during the third quarter, having previously owned 8.71 million shares. In May, shares of ImmunoGen, Inc. (NASDAQ:IMGN) spiked after the company reported positive late-stage trial results for its experimental ovarian cancer drug Elahere. The company said the drug helped extend the time the patient lived without the cancer worsening compared to chemotherapy. Interestingly, Point72 Asset Management initiated a stake in ImmunoGen, Inc. (NASDAQ:IMGN) during the second quarter of 2023. For the third quarter, ImmunoGen, Inc. (NASDAQ:IMGN) reported revenue of $113.4 million, including $105.2 million from sales of Elahere, versus revenue of $15.4 million posted for the same period of the last year.
There were 46 hedge funds in our database bullish on ImmunoGen, Inc. (NASDAQ:IMGN) at the end of September, up from 42 funds a quarter earlier.
5. Southern Co (NYSE:SO)
Value of Position: $146.31 million
Bought or Sold: Sold
In Southern Co (NYSE:SO), billionaire Steve Cohen’s Point72 Asset Management liquidated the position that had previously been reported at 2.26 million shares. Southern Co (NYSE:SO) is a electricity and gas utility company that operates in the Southern part of the United States. For the last quarter, Southern Co (NYSE:SO) reported revenue of $6.98 billion and EPS of $1.42, versus the consensus estimate of $8.38 billion and $1.32, respectively. The company pays a dividend of $0.70 per share and has been growing for more than two decades, making it to our list of 5 high yield stocks to buy in November.
There were 35 funds in our database bullish on Southern Co (NYSE:SO) at the end of September, up by three over the quarter.
4. DTE Energy Co (NYSE:DTE)
Value of Position: $150.45 million
Bought or Sold: Sold
DTE Energy Co (NYSE:DTE) is another utility company in which Point72 sold out its position during the third quarter. In the previous 13F filing, the fund disclosed ownership of 1.51 million shares. For the last quarter, DTE Energy Co (NYSE:DTE) reported lower-than-expected results with EPS of $1.44 missing the consensus by $0.20 and the revenue of $2.89 billion was $2.48 billion lower than anticipated.
At the end of September, 27 hedge funds held shares of DTE Energy Co (NYSE:DTE). And even though the number of bullish investors remained unchanged over the quarter, the aggregate value of their holdings slid to $254.69 million from $613.58 million.
3. Western Digital Corp (NASDAQ:WDC)
Value of Position: $151.93 million
Bought or Sold: Bought
In the list of 5 stocks billionaire Steve Cohen just bought and sold Western Digital Corp (NASDAQ:WDC) is the only company added to Point72’s equity portfolio. At the end of September, the fund held 3.33 million shares. Overall the number of investors bullish on Western Digital Corp (NASDAQ:WDC) inched up by five to 44. Western Digital Corp (NASDAQ:WDC) is engaged in manufacturing of data storage solutions including devices, data center systems and cloud storage services.
In November, Goldman Sachs upgraded its rating on Western Digital Corp (NASDAQ:WDC)’s stock to “Neutral” from “Sell” and raised the price target to $48 from $31, citing improved outlook for NAND flash memory and the potential recovery in Nearline HDD segment.
2. Dominion Energy Inc (NYSE:D)
Value of Position: $160.13 million
Bought or Sold: Sold
Dominion Energy Inc (NYSE:D) was also removed from Steve Cohen’s fund’s equity portfolio during the third quarter, the fund having previously reported ownership of 3.58 million shares. For the last quarter, Dominion Energy Inc (NYSE:D) reported EPS of $0.77, in-line with expectations, but its revenue of $3.81 billion came in lower than expected.
At the end of September, there were 26 funds in our database that held in aggregate $362.03 million worth of Dominion Energy Inc (NYSE:D) shares. Among these funds, Stuart J. Zimmer’s Zimmer Partners and Ric Dillon’ Diamond Hill Capital are the top shareholders with positions valued at $238.95 million and $178.18 million, respectively.
1. Palo Alto Networks Inc (NASDAQ:PANW)
Value of Position: $169.82 million
Bought or Sold: Sold
After having held 724,400 shares of Palo Alto Networks Inc (NASDAQ:PANW) at the end of the second quarter, Point72 Asset Management closed the position during the July-September period. On the other hand, there were 79 funds tracked by Insider Monkey that held shares of Palo Alto Networks Inc (NASDAQ:PANW) at the end of the third quarter, down by four over the quarter.
Palo Alto Networks Inc (NASDAQ:PANW) is a multinational cyber security company headquartered in California. The company serves over 70,000 businesses around the world, including most companies on the Fortune 100 list. It is also one of the best-performing S&P 500 stocks in the last 10 years. In its latest earnings report, Palo Alto Networks Inc (NASDAQ:PANW) reported EPS of $1.38 higher than the consensus estimate of $1.16 and its revenue of $1.88 billion beat the expectations b $35.6 million.
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