Stocks In Steven Cohen’s Portfolio That Wall Street Loves

in INVESTING IDEAS by

Point72 Asset Management released its quarterly 13F filing with the SEC on May 15th. Applying Wall Street price targets, I highlight the firm’s most undervalued stocks below.


Point72 Asset Management’s 7 Bullish Analyst Targets

Banks and brokerages often release 12 to 18 month price targets for the stocks they cover. Analyst upgrades and downgrades alone can often impact a company’s stock price.

“In the short run, the market is a voting machine but in the long run, it is a weighing machine.” – Benjamin Graham

The table below ranks stocks in Point72 Asset Management’s portfolio with most bullish analyst targets:

Point72 Asset Management 7 Bullish Analyst Targets
Ticker Name Upside (Analyst Target) % Of Portfolio
ADMS ADAMAS PHARMACEUTICALS INC 114.2% 0.2%
DVAX DYNAVAX TECHNOLOGIES CORP 81.8% 0.4%
PBYI PUMA BIOTECHNOLOGY INC 74.5% 0.4%
CLVS CLOVIS ONCOLOGY INC 63.3% 0.3%
RDUS RADIUS HEALTH INC 57.2% 0.3%
LRCX LAM RESEARCH CORP 52.3% 0.6%
OI OWENS ILL INC 49.0% 0.2%

Adamas Pharmaceuticals, Inc. (NasdaqGM: ADMS) appears to be the most undervalued stock in the fund based on the average price target from Wall Street analysts.

Dynavax Technologies Corporation (NASDAQ: DVAX) appears to be the second most undervalued stock in the portfolio. The company’s upside of 81.8% is very intriguing. With 74.5% margin of safety, Puma Biotechnology Inc (NYSE: PBYI) is the third most attractively priced security.

Other notable holdings with nice upside potential includes Clovis Oncology, Inc. (NASDAQ: CLVS), Radius Health, Inc. (NASDAQ: RDUS), Lam Research Corporation (NASDAQ: LRCX) and Owens-Illinois, Inc. (NYSE: OI).


Final Thoughts

If you haven’t heard of Billionaire Steven Cohen, you may already know a little about him if you’ve watched Showtime’s hit series Billions. Damian Lewis plays the show’s main character Bobby Axelrod that very loosely portrays Cohen and his former hedge fund SAC Capital.

The show focuses on a district attorney (played by Paul Giamatti) whose sole focus is to take down Axelrod on securities fraud. Cohen’s hedge fund, SAC Capital, was similarly charged with insider trading in 2013 and ultimately settled out of court for $1.8 billion in the largest securities fraud case ever. The Showtime series is very entertaining, albeit pure entertainment, and not entirely an accurate representation of Cohen.

Investing morality aside, Cohen’s real-life results are undeniable. He was the third highest-earning hedge fund manager of 2012 when he made $1.4 billion.

Steven Cohen has generally shied away from the press even before the SEC’s investigation making it difficult to truly understand his investment approach. However, Jack Schwager shared a rare look into Cohen’s process in 2003 when he published Stock Market Wizards: Interviews with America’s Top Stock Traders. Leading up to the interview with Cohen, Schwager highlighted that “in the seven years he has managed money, Cohen has averaged a compounded annual return of 45 percent.”

Managers with more than $100 million in qualifying assets under management are required to disclose their holdings to the SEC each quarter via 13F filings. Qualifying assets include long positions in U.S. equities and ADRs, call/put options, and convertible debt securities. Shorts, cash positions, foreign investments and other assets are not included. It is important to note that these filings are due 45 days after the quarter end date. Therefore, Point72 Asset Management’s holdings above represent positions held as of March 31st and not necessarily reflective of the fund’s current stock holdings.

However, most can agree that with thousands of stocks traded on U.S. exchanges, doing thorough research on each one is nearly impossible for smaller investors. Leveraging the resources of the largest hedge funds on Wall Street can be a powerful way to narrow down the list.

The ideas section of finbox.io tracks top investors and trending investment themes. You can get the latest data on the holdings discussed above at the Point72 Asset Management page.

As of this writing, I did not hold a position in any of the aforementioned securities and this is not a buy or sell recommendation on any security mentioned.

Expertise: financial technology, analyzing market trends. Brian is a founder at finbox.io, where he’s focused on building tools that make it faster and easier for investors to research stock fundamentals. Brian’s background is in physics & computer science and previously worked as a software engineer at GE Healthcare. He enjoys applying his expertise in technology to help find market trends that impact investors. Brian can be reached at brian@finbox.io or at +1 (516) 778-6257.

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