The Point72 Asset Management hedge fund, based in Stamford, Connecticut, had amassed $41.3 billion in managed 13F securities as of its latest filing with the Securities and Exchange Commission, or SEC. At the helm of this successful fund is Steve Cohen, the founder of hedge fund SAC Capital Advisors, which was shut down after the firm pleaded guilty to insider trading and agreed to pay $1.8 billion in fines in 2013. A decade later, Cohen is back on top as the current owner of the New York Mets Major League Baseball team in addition to running Point72.
Cohen’s hedge fund invests in a mix of stocks, exchange-traded funds and options. The fund mostly held onto its positions in the first quarter, slightly trimming some and adding to others. Mainly, Cohen cut his exposure to SPDR S&P 500 ETF Trust (ticker: SPY) puts while accumulating iShares Russell 2000 ETF (IWM) puts.
SPY and IWM options are favorite investments of other top billionaire investors’ funds, such as Ken Griffin’s Citadel Advisors and Larry Robbins’ Glenview Capital Management. Despite SAC’s past legal troubles, Cohen still ranks among the richest people in the world, with a net worth of $14.7 billion, according to the Bloomberg Billionaires Index.
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According to Fintel, Point72 disclosed 2,113 holdings in its latest SEC filings. It has some call and put options, but most of its holdings are long stock positions with a top 10 holdings concentration of only 13.8%. Although Cohen’s hedge fund offers exposure to many stocks, Big Tech companies make up some of its top holdings. These are the top stocks in Point72’s portfolio as of the quarter ended March 31 and reported May 15:
| Stock | Point72 Portfolio Weight | Market Value of Shares |
| Amazon.com Inc. (AMZN) | 1.03% | $680.9 million |
| Broadcom Inc. (AVGO) | 0.95% | $623.4 million |
| Microsoft Corp. (MSFT) | 0.65% | $430.5 million |
| AT&T Inc. (T) | 0.65% | $429.0 million |
| FedEx Corp. (FDX) | 0.50% | $326.9 million |
| Coca-Cola Co. (KO) | 0.49% | $325.0 million |
| PayPal Holdings Inc. (PYPL) | 0.48% | $315.9 million |
Amazon.com Inc. (AMZN)
Amazon is the largest position in the Point72 portfolio, excluding index fund call and put options. The consumer discretionary stock made up 1.03% of Cohen’s portfolio at the end of the first quarter, a 19% reduction from its 1.17% allocation in the fourth quarter of 2023, or a 896,579 share cut.
The tech giant launched its online marketplace almost 30 years ago. Since its humble beginnings as an online bookstore, Amazon has evolved to dominate multiple markets. For example, the company’s acquisition of Whole Foods in 2017 made it a top grocery store chain overnight. Amazon Web Services is also the leading cloud provider that many companies rely on to store data and remain efficient. This segment of Amazon’s business has experienced revenue acceleration due to artificial intelligence.
Amazon is also gaining ground in advertising and is positioned to challenge the duopoly established by Facebook and Google within a few years. The tech conglomerate reported $11.8 billion in ad revenue in Q1 2024, which was a 24% year-over-year improvement.
Portfolio weight: 1.03% Market value of shares: $680.9 million
Broadcom Inc. (AVGO)
Broadcom has emerged as a top Cohen holding recently, as the stock wasn’t in his portfolio at the end of 2023 but now makes up nearly 1% of Point72’s very diversified lineup as of the first quarter. Point72 added 4.7 million shares with a market value of about $623 million.
While Nvidia Corp. (NVDA) has held the AI chip crown for several years, other chipmakers like Broadcom have been catching up. Few competitors have made as much progress as Broadcom, though. The San Jose, California, firm added a record $3.1 billion to its sales because of AI products in its fiscal second quarter. Its VMware acquisition has also worked wonders for the company, resulting in 43% year-over-year revenue growth in Q2 2024. Hock Tan, president and CEO of Broadcom, mentioned in a press release that more enterprises have adopted the VMware software stack to build their own private clouds.
Broadcom raised its full-year outlook and continues to outperform the S&P 500. It’s also outperformed most AI chip stocks. Broadcom is working on a partnership with OpenAI that can lead to greater market share in a booming industry. The AI market is projected to maintain a compound annual growth rate of 36.6% from 2024 to 2030, according to Grand View Research.
Portfolio weight: 0.95% Market value of shares: $623.4 million
Microsoft Corp. (MSFT)
Cohen more than doubled his position in Microsoft stock in the first quarter. Point72 first invested in Microsoft in Q1 2016, and it remains a top holding for the hedge fund.
Microsoft is a leader in the artificial intelligence industry. Its Copilot allows users to navigate Microsoft’s products more efficiently, and Copilot for Security has demonstrated Microsoft’s ability to use the AI tool as a foundation to expand into multiple industries.
The tech giant is growing in multiple verticals. It has successful brands in personal computing, advertising, gaming, business software and other industries. Cloud revenue is the most important component of Microsoft’s business, as it makes up more than half of the company’s total revenue.
Microsoft Cloud is also poised to receive a boost from artificial intelligence applications. The company has made several investments in the AI industry, including a landmark $13 billion investment in ChatGPT creator OpenAI.
Portfolio weight: 0.65% Market value of shares: $430.5 million
AT&T Inc. (T)
This telecom giant is the fourth-largest holding in the Point72 portfolio, excluding options. It represents a departure from the Big Tech companies that make up the top three holdings. While AT&T stock is up 18.8% year to date as of July 26, shares have risen only 8.4% over the past five years.
The stock trades at a trailing price-to-earnings ratio of 10.9 and offers a 5.8% forward dividend yield, two factors that have attracted value investors. Revenue and net income both dipped year over year in the first quarter, but while financial growth isn’t booming, the company is retaining its customers. AT&T achieved a record-low first-quarter postpaid phone churn and had its 17th consecutive quarter of more than 200,000 AT&T Fiber net adds.
Cohen was bullish on AT&T stock and boosted his stake by 168% in the first quarter. Point72’s exposure to AT&T stock went from 0.25% of the portfolio to 0.65% of the portfolio in Q1, an addition of 15.3 million shares.
Portfolio weight: 0.65% Market value of shares: $429 million
FedEx Corp. (FDX)
Cohen first bought shares of this logistics leader during the pandemic and has made it one of his largest holdings. Point72 slightly added to its FDX position this quarter.
FedEx is a value stock that trades at a trailing P/E of 17.4 and comes with a 1.8% forward dividend yield. For its most recent earnings report, the company beat expectations for full-year diluted earnings per share. Net income was slightly down year over year, but revenue ticked up higher.
The company has established a firm presence in the logistics industry. Its ground, freight and air shipping solutions are among the top choices in the market. FedEx reports similar revenue and net income numbers to UPS, despite having a lower valuation.
Portfolio weight: 0.5% Market value of shares: $326.9 million
Coca-Cola Co. (KO)
Point72 almost doubled its stake in Coca-Cola during the first quarter. The leading beverages company trades at a trailing P/E ratio of 27 and offers a 2.9% forward yield. Shares have enjoyed a rally since mid-April but still trail the S&P 500 over the past five years.
Coca-Cola offers more insulation than most stocks during economic slowdowns. People continue to buy beverages no matter what’s happening in the economy. Coca-Cola expanded its market share in the nonalcoholic ready-to-drink beverages industry in the first quarter of 2024. In the second quarter, revenue grew 3% year over year to $12.4 billion and adjusted earnings per share rose 7%, both beating estimates.
Portfolio weight: 0.49% Market value of shares: $325 million
PayPal Holdings Inc. (PYPL)
PayPal is down roughly 80% from its all-time high during the pandemic. Cohen missed out on all of those losses, however, and loaded up on PayPal stock in Q2 2022, raising his total exposure from 0.05% to 0.48% of the fund’s portfolio.
The fintech firm represents growth at a reasonable price. It trades at a 15 P/E ratio while having decent revenue and earnings growth. PayPal reported 9% year-over-year revenue growth and increased its GAAP EPS by 18% year over year in the first quarter.
PayPal has established itself as a top choice for making online payments. The firm lets users connect their bank accounts, credit and debit cards, and other payment methods to its accounts. The company also offers credit and debit cards for its users. The stock is down 5.1% year to date.
Portfolio weight: 0.48% Market value of shares: $315.9 million
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7 Steve Cohen Stocks That Made Point72 a Top Hedge Fund originally appeared on usnews.com
