In this article, we will examine Billionaire Steve Cohen’s 10 Small-Cap Stocks Picks with Huge Upside Potential.
Known for speed, agility, and a high-risk, high-reward investment approach, Steve Cohen is one of the most successful hedge fund managers on Wall Street. The billionaire investor, founder of the now-defunct SAC Capital Advisors, is the brains behind Point72 Asset Management, one of the most tracked investment advisors.
The hedge fund is heavily invested in the equity markets, spreading risk across industries from technology to healthcare, consumer cyclical, financial services, and real estate, among others. Last year, the investment firm returned 19%, affirming Cohen’s impressive stock-picking skills.
Early in the year, Cohen warned of a significant market correction owing to the threat posed by tariffs, DOGE, and immigration uncertainties.
“I think this is one of those moments where there’s really a lot of uncertainty, and I have pretty strong views here. Tariffs cannot be positive; I mean it’s a tax. And you can imagine tit for tat if the US does something—it implements a tax on somebody—somebody else is going to raise the stakes perhaps and raise their tax back. Taxes are never positive,” Cohen is quoted as saying.
Cohen has also raised concerns that the market is ‘headline driven’ amid the US tariff war and uncertainty. While his economists believe there is a 45% chance of a recession, Cohen insists it is not that high even though there is a prospect of slow growth over the next year.
“Even in 2026 we expect growth in one and a half percent range. And so in a world where multiples are high am so much concerned on the short term basis. It does not mean we have to go down a lot. We can be in a trading range and when I look at it I think the offset is what is happening in AI. You can always start hearing about the margins benefit that companies can accrue from implementing these tools, the savings and the effects on the bottom line are pretty significant.”
While significant gains in large-cap stocks have fueled the rally, small-cap stocks have lagged the overall market. Likewise, Cohen’s portfolio boasts small-cap stocks well positioned to benefit from the easing of monetary policy. The US Federal Reserve’s rate cuts and signals of further cuts are already making the case for small-cap stocks.
With that in mind, let’s take a look at some of billionaire Steve Cohen’s small-cap stock picks with huge upside potential.
Steven Cohen of Point72 Asset Management
Our Methodology
To come up with our list of Billionaire Steve Cohen’s small-cap stocks picks with huge upside potential, we scanned the Point72 Asset Management portfolio. We focused on small-cap stocks with a market cap of between $300 million and $2 billion, which are popular among elite hedge funds. We also trimmed our list to focus on stocks with upside potential of more than 20% as of October 23. We have also detailed the stock’s performance from the end of the second quarter (June 30, 2025) to October 23, 2025, to provide insights into whether Cohen was right or wrong for betting on the stock. Finally, we ranked the stocks in ascending order based on the value of Point72 Asset Management’s equity stakes in them.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
Billionaire Steve Cohen’s Small-Cap Stocks Picks with Huge Upside Potential
10. Amplitude, Inc. (NASDAQ:AMPL)
Point72 Asset Management Equity Stake: $14.82 Million
Stock Upside Potential: 49.46%
Market Cap: $1.32 Billion
Stock Performance (end Q2-October 23): -20.40%
Number of Hedge Fund Holders: 28
Amplitude, Inc. (NASDAQ:AMPL) is one of billionaire Steve Cohen’s small-cap stock picks with tremendous upside potential. On October 21, Amplitude Inc. (NASDAQ:AMPL) announced the public release of its Model Context Protocol (MCP) server, enabling companies to access behavioral data directly within AI environments like Claude and Cursor.
This integration allows users to query live customer metrics—such as retention and sign-up trends, using natural language, streamlining insights without switching platforms. Amplitude also expanded its AI Agents beta program to all customers, introducing Dashboard Agent and Session Replay Agent. These tools automatically analyze dashboards, detect trends, and identify user behavior patterns. Early adopter Zip praised MCP’s ability to unlock cross-domain insights, while Amplitude plans further enhancements and deeper integration in the coming months.
Amplitude, Inc. (NASDAQ:AMPL) offers a digital analytics platform designed to help businesses gain insights into user behavior across their digital products. Its tools enable companies to track engagement, uncover usage trends, and optimize product design and functionality.
9. Taysha Gene Therapies Inc. (NASDAQ:TSHA)
Point72 Asset Management Equity Stake: $16.90 Million
Stock Upside Potential: 92.43%
Market Cap: $1.35 Billion
Stock Performance (end Q2-October 23): 119.90%
Number of Hedge Fund Holders: 34
Taysha Gene Therapies Inc. (NASDAQ:TSHA) is one of billionaire Steve Cohen’s small-cap stock picks with huge upside potential. On October 20, Raymond James initiated coverage on Taysha Gene Therapies (NASDAQ:TSHA) with a Strong Buy rating and a $13 price target, aligning with the broader analyst consensus.
The firm cited promising Phase 1/2 REVEAL trial results for Rett syndrome and positive FDA feedback as key drivers. With a $1.28 billion market cap and a cash-rich balance sheet, Taysha is well-positioned to advance its clinical programs.
Recent milestones include Breakthrough Therapy Designation, FDA protocol alignment, and approval for a 6-month interim analysis that could fast-track regulatory submission. Patient enrollment for REVEAL Part B is underway, with final dosing expected by mid-2026 and potential commercialization in 2027. Taysha’s focus on a genetically defined Rett syndrome population offers a clear therapeutic opportunity.
Taysha Gene Therapies Inc. (NASDAQ:TSHA) is a clinical-stage biotech firm dedicated to advancing adeno-associated virus (AAV)-based gene therapies for rare, single-gene disorders affecting the central nervous system. Its mission centers on delivering targeted treatments that address the root genetic causes of these conditions.
