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Hedge Fund Point 72 Builds Position in These Stocks; Should You?

Story Highlights

Steve Cohen’s Point 72 Asset Management is increasing its portfolio allocation to Biogen, while also taking exposure to other stocks like Dell Technologies and Workday.

Billionaire investor and hedge fund manager Steve Cohen’s Point 72 Asset Management has disclosed some interesting stakes in its September quarter holdings. A Form 13F filed yesterday showed that Point 72 has taken new positions in the following stocks.

At the same time, considering the tough macroeconomic backdrop, the ace investor has completely exited positions in a few consumer goods stocks, including Coca-Cola (NYSE:KO), Nike (NYSE:NKE), McDonald’s (NYSE:MCD), and Kraft Heinz (NASDAQ:KHC).

Cohen’s fund has a whopping $25 billion in assets under management. Let’s take a look at three picks from Cohen’s Q3 portfolio.

Biogen Inc. (NASDAQ:BIIB)

Biogen is an American multinational biotechnology company with a focus on the discovery, development, and delivery of therapies for the treatment of neurological diseases to patients worldwide.

Notably, Biogen holds the top spot in the fund, with 1.94% of Point 72’s portfolio allocation. In Q3, Cohen increased the stake in BIIB stock to 1.68 million shares (from 455,000 shares), valued at $448 million.

Is Biogen Stock a Buy or Sell?

On TipRanks, Biogen stock has a Moderate Buy consensus rating. This is based on 19 Buys and seven Hold ratings. Also, the average Biogen price target of $304.08 implies a modest 1.7% upside potential to current levels. Year to date, the stock has gained 22.5%.

Workday, Inc. (NASDAQ:WDAY)

Workday is an American on-demand financial management, human capital management, and Student information system software vendor. Cohen bought 1.06 million shares of Workday, valued at $161.64 million.

Workday is slated to report its third quarter Fiscal 2023 results on November 29. The Street expects Workday to post an adjusted diluted profit of $0.84 per share in Q3, meaningfully lower than the Q3FY21 figure of $1.10 per share. Meanwhile, revenue is pegged at $1.58 billion, 18.8% higher compared to the prior year’s quarter figure.

Is Workday a Good Stock to Buy?

Analysts too are highly bullish about WDAY stock. On TipRanks, Workday has a Strong Buy consensus rating. This is based on 17 Buys and four Hold ratings. The average Workday price target of $214.11 implies 39.6% upside potential to current levels. In the past six months, the stock has lost 12.9%.

Dell Technologies (NYSE:DELL)

Global information technology giant, Dell Technologies offers hardware and software solutions. DELL is set to release its Q3FY23 results on November 21. Analysts expect Dell Technologies to post an adjusted profit of $1.61 per share in Q3, significantly lower than the prior-year figure of $2.37 per share. Further, total net revenue is pegged at $24.53 billion, representing a 13.6% year-over-year decline.

Nonetheless, Cohen bought 4.07 million shares ($139.31 million) of DELL in the quarter, alongside a call option on 2,500 shares.

Is DELL a Good Stock to Buy?

On TipRanks, DELL stock has a Moderate Buy consensus rating. This is based on ten Buys versus five Holds. The average Dell Technologies price forecast of $52.15 implies 23.4% upside potential to current levels. Amid the slowing demand for personal computers, DELL stock has lost 24% year to date.

Conclusion

As per the latest 13-F filing, Point 72’s portfolio value has increased from roughly $23.70 billion at Q2-end to $25.04 billion in Q3. Cohen’s significant exposure to Biogen reflects his strong conviction in the biopharmaceutical company. Seeing Cohen’s impressive history of stock selection, an investor may choose to follow his portfolio allocation strategy to optimize his or her investment returns.

Find out which stock the biggest hedge fund managers are buying right now

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