In this piece, we will take a look at the 12 stocks that billionaire Steve Cohen bought aggressively recently. If you want to skip our overview of the billionaire hedge fund boss, his firm, and the latest news, then you can take a look at Billionaire Steve Cohen Aggressively Bought These 5 Stocks Recently.
Steve Cohen is one of the richest people in the world, with Forbes estimating his net worth at $19.8 billion. The source of his wealth and fortune is the finance industry, with Mr. Cohen being known for having set up and run the hedge fund Point72 Asset Management. Mr. Cohen’s hedge fund is also one of the biggest financial institutions in the world, with its latest portfolio estimate worth coming in at $34 billion.
Point72 Asset Management itself has somewhat of a controversial history. The hedge fund traces its roots back to 1992 when it was originally set up as SAC Capital. After being set up, the fund would end up posting double digit percentage returns. But its fortunes would dwindle as an insider trading investigation would see the firm pay more than a billion dollars to the SEC and cease operating in 2014. Two years later, Point72, a separate entity, would start accepting capital from outside investors.
While Mr. Cohen is primarily in the news these days due to his sports franchise, his hedge fund has also been making big moves. 2022 and 2023 have been some of the most disruptive years for the hedge fund industry in its recent history as they have seen investors swing between traditional equities such as oil companies and high growth sectors such as artificial intelligence. Throughout 2022, the industry had to cope with the effects of high inflation on the growth sector and a re-balancing of the global oil supply chain in the wake of the Russian invasion of Ukraine. Then, as it entered 2023 with calls of recession, funds had to re-balance their approach to focus on artificial intelligence as stocks like NVIDIA Corporation (NASDAQ:NVDA) raced to set record highs.
Amidst this turmoil, Point72 has been busy re-calibrating its teams to better match the changed financial environment these days. 2024 is starkly different for the finance industry as investors have to cope with an era of high interest rates and their impact on stock valuations. Higher rates drag down stock valuations as a whole, and they also make it trickier for hedge funds to utilize leverage to finance their bets. As far as Mr. Cohen’s hedge fund is concerned, it is expanding its macroeconomics teams to deal with today’s environment. According to media reports, Point72 will have 51 macro trading teams this year, with two high profile executives due to join its ranks. The growth comes after the hedge fund brought eight money managers within its fold last year to grow its macro teams to 49. Macro teams focus on broader economic trends such as inflation and interest rates, and multiple quarters believe that the era of high interest rates is perfect for this particular trading sub segment.
But what about performance? Point72 is one of several hedge funds that have lagged the S&P 500 in returns last year. Data shows that the hedge fund ended the year by posting returns of 10.6%, while the S&P and the tech-heavy NASDAQ indexes delivered 24% and 41% returns during the same time period.
With these details in mind, let’s take a look at the stocks that Steve Cohen is aggressively buying. The top three are Axos Financial, Inc. (NYSE:AX), Hibbett, Inc. (NASDAQ:HIBB), and Nevro Corp. (NYSE:NVRO).
Steven Cohen of Point72 Asset Management
Our Methodology
To make our list of the stocks that Steve Cohen is aggressively buying, we listed the stocks in his portfolio as of the third quarter of 2023 by the percentage growth in the stakes from the second quarter. Out of these, the top 12 stocks were selected.
For these stocks we have also mentioned hedge fund sentiment. Hedge funds’ top 10 consensus stock picks outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here). That’s why we pay very close attention to this often-ignored indicator.
Billionaire Steve Cohen Aggressively Bought These 12 Stocks Recently
12. Teekay Tankers Ltd. (NYSE:TNK)
Point72’s Q3 2023 Investment: $99,912
Percentage Growth in Stake: 239,900%
Teekay Tankers Ltd. (NYSE:TNK) is an ocean oil transportation firm headquartered in Hamilton, Bermuda. It marks a strong start to our list of Steve Cohen’s aggressive stock buys as the shares are rated Strong Buy on average.
After digging through 910 hedge fund holdings for last year’s third quarter, Insider Monkey discovered 20 Teekay Tankers Ltd. (NYSE:TNK) shareholders. Israel Englander’s Millennium Management was the largest shareholder as it owned $26.6 million worth of shares.
Teekay Tankers Ltd. (NYSE:TNK) joins Hibbett, Inc. (NASDAQ:HIBB), Axos Financial, Inc. (NYSE:AX), and Nevro Corp. (NYSE:NVRO) in our list of the stocks that Steve Cohen is aggressively buying.
11. Viper Energy, Inc. (NASDAQ:VNOM)
Point72’s Q3 2023 Investment: $89,216
Percentage Growth in Stake: 319,900%
Viper Energy, Inc. (NASDAQ:VNOM) is an American oil and gas property prospecting company headquartered in Midlands, Texas. It’s one of the strongest rated stocks on our list, due to its average share price target of $36.75 and an average rating of Strong Buy.
By the end of last year’s third quarter, 15 out of the 910 hedge funds covered by Insider Monkey’s research were the firm’s shareholders. Viper Energy, Inc. (NASDAQ:VNOM)’s biggest investor is Murray Stahl’s Horizon Asset Management due to its $43.6 million stake.
10. Park Hotels & Resorts Inc. (NYSE:PK)
Point72’s Q3 2023 Investment: $29.9 million
Percentage Growth in Stake: 393,819%
Park Hotels & Resorts Inc. (NYSE:PK) is a real estate investment trust that focuses on the hospitality industry. Heading into its fourth quarter earnings report in February, the firm reported in December that its revenue per average room grew by an average double digit percentage in October and November 2023.
As of Q3 2023 end, 28 out of the 910 hedge funds profiled by Insider Monkey were Park Hotels & Resorts Inc. (NYSE:PK)’s shareholders. Out of these, the firm’s largest shareholder is Dmitry Balyasny’s Balyasny Asset Management as it owns 4.7 million shares that are worth $58 million.
9. Vivid Seats Inc. (NASDAQ:SEAT)
Point72’s Q3 2023 Investment: $26.9 million
Percentage Growth in Stake: 419,900%
Vivid Seats Inc. (NASDAQ:SEAT) is a small American company that allows users to buy and sell tickets to events such as concerts and theatrical performances. Despite a high inflationary environment straining consumer spending, the firm has beaten analyst EPS estimates in all four of its latest quarters.
Insider Monkey dug through 910 hedge fund portfolios for their September quarter of 2023 shareholdings to find that 21 had held a stake in the company. Vivid Seats Inc. (NASDAQ:SEAT)’s biggest investor in our database is Ken Griffin’s Citadel Investment Group due to its $7.5 million investment.
8. Li Auto Inc. (NASDAQ:LI)
Point72’s Q3 2023 Investment: $8.3 million
Percentage Growth in Stake: 634,625%
Li Auto Inc. (NASDAQ:LI) is a Chinese electric vehicle company headquartered in Beijing, China. Its shares are also rated Strong Buy on average and the stock is up by 45% over the year as investors continue to remain optimistic about China’s growing electric vehicle industry which is also one of the most competitive in the world.
Insider Monkey scoured through 910 hedge fund portfolios for their Q3 2023 shareholdings and found that 28 had bought and owned Li Auto Inc. (NASDAQ:LI)’s shares. Jim Simons’ Renaissance Technologies was the largest shareholder since it owned a $324 million stake.
7. Pacific Premier Bancorp, Inc. (NASDAQ:PPBI)
Point72’s Q3 2023 Investment: $8.3 million
Percentage Growth in Stake: 634,625%
Pacific Premier Bancorp, Inc. (NASDAQ:PPBI) is a regional bank headquartered in Irvine, California. The tail end of 2023 was a crucial month for the bank, as after several earnings misses, it announced that it is now restructuring its investment portfolio to focus on higher yield assets.
As of September 2023 end, 17 out of the 910 hedge funds covered by Insider Monkey’s research were the firm’s investors. Pacific Premier Bancorp, Inc. (NASDAQ:PPBI)’s biggest investor in our database is Amy Minella’s Cardinal Capital due to its $35.6 million investment.
6. Nu Holdings Ltd. (NYSE:NU)
Point72’s Q3 2023 Investment: $17 million
Percentage Growth in Stake: 1,202,513%
Nu Holdings Ltd. (NYSE:NU) is a Brazilian digital bank headquartered in Sao Paulo, Brazil. Its shares are rated Strong Buy on average and the average analyst share price target is $9.85.
During Q3 2023, 50 out of the 910 hedge funds profiled by Insider Monkey had bought and owned Nu Holdings Ltd. (NYSE:NU)’s shares. Warren Buffett’s Berkshire Hathaway was the largest shareholder since it owned $776 million worth of shares.
Axos Financial, Inc. (NYSE:AX), Hibbett, Inc. (NASDAQ:HIBB), Nu Holdings Ltd. (NYSE:NU), and Nevro Corp. (NYSE:NVRO) are some of Steve Cohen’s aggressive stock picks.
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Disclosure: None. Billionaire Steve Cohen Aggressively Bought These 12 Stocks Recently is originally published on Insider Monkey.