Point72's Steve Cohen Adds $2B Worth of New Tech, Telco, and Healthcare Stocks in Q4

New York Mets owner and billionaire investor Steven A. Cohen is known for his speed, agility, and high-risk/high-reward investing approach, which has earned him a personal wealth of over £16.4 billion ($21 billion).

Cohen is the founder of the now-defunct SAC Capital Advisors, which is among the most successful hedge funds. The fund was charged with insider trading charges and repaid investors £1.4 billion ($1.8 billion) in penalties as Cohen faced a two-year ban on managing investor money.

In 2013, he converted his investment operations into a family office and formally adopted the Point72 Asset Management name the following year. Years later, in 2018, the firm became a registered investment advisor and started accepting outside capital. As of Q4 2024, Point72 Asset Management had £28.5 billion ($36.4 billion) worth of assets under management.

During the quarter-ended 31st December, 2024, Cohen added new tech, telecom, and healthcare stocks to his portfolio, worth £1.5 billion ($1.9 billion).

New Stake in Amazon, Salesforce, and Netflix

Cohen's hedge fund opened a new position in Amazon (NASDAQ:AMZN), purchasing 4.18 million shares of the e-commerce giant worth £720.7 million ($917.6 million).

During the quarter, he also bought 888,770 shares in Salesforce (NYSE:CRM) worth £233.3 million ($297.1 million). Amid rising demand for digital streaming services, Cohen purchased 236,720 shares in Netflix (NASDAQ:NFLX) worth £165.7 million ($211 million).

US equities continue to face massive selling pressure amid the tariff turmoil, which threatens to increase inflation and consumer prices, disrupt supply chains, and impact GDP growth. However, companies like Amazon continue to innovate technologies aggressively, making advancements in AI with the recent announcement of Amazon Nova foundation models designed to reduce costs and latency for GenAI tasks.

Meanwhile, Netflix posted record revenue in Q4 at £8 billion ($10.2 billion), up 16% year-over-year, as net paid additions increased by 19 million to reach 302 million memberships. Earnings per diluted share doubled YoY to £3.3 ($4.2).

Salesforce also unveiled an AI offering in early March called AgentExchange, a marketplace for AI agents in enterprise software that allows businesses to execute complex and redundant tasks without requiring extensive technical expertise. The company's flagship AI model was launched with over 200 partners, including Google Cloud, DocuSign, Box, and Workday. Later that month, Salesforce also announced plans to invest £785.5 million ($1 billion) in Singapore to help the nation expand its labour force in key service and public sector roles.

Cohen Buys 15M Shares of AT&T

Point72 Asset Management invested £279.1 million ($355.4 million) to buy 15.61 million shares of AT&T (NYSE:T).

The company successfully tested a new technology that enabled data transfer at speeds of 1.6 terabits per second across a 296-kilometre network, demonstrating its capability to support the surging demand for AI workloads and bandwidth requirements. AT&T is also working with FirstNet Authority and AST SpaceMobile to offer multi-layered coverage, network insights, and space-based cellular connectivity to millions of US first responders across hundreds of thousands of square miles.

The stock price is up over 17% year-to-date, closing at £21 ($26.8) per share on 7th April.

A $190M Stake in UnitedHealth Group

Cohen also opened a new position in UnitedHealth Group (NYSE:UNH) in Q4. He purchased 376,820 company shares worth £149.7 million ($190.6 million).

The stock price is up 4% YTD and could see further upside after the Trump Administration announced it would increase payment rates for Medicare insurers next year. This will generate an additional revenue of £19.6 billion ($25 billion) for the industry. The decision is part of plans to support the Medicare Advantage programme, which allows private insurers to administer the benefits of the federal program for older and disabled Americans. The increase in rates is reportedly planned to reflect growing medical costs.

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