Insider Monkey recently analyzed billionaire Steve Cohen’s latest portfolio to see some of his top AI stock picks.
Since Alphabet(GOOG) ranks 5thth in our list of the 10 Best AI Stock Picks of Billionaire Steve Cohen, the stock deserves a detailed look.
Billionaire Steve Cohen is one of the few hedge fund managers who almost always dazzles with his outperformance and prescient bets. Cohen, who also owns The New York Mets, founded SAC Capital back in 1992, and since then through 2009 lost money only once. A Bloomberg report earlier this year said that Point72 Asset Management has been able to raise so much cash recently that it’s starting to decline external money. The fund has reportedly raised about about $12.8 billion since 2020.
Point72’s main fund returned about 11% in 2023, and 12% in the previous year.
Billionaire Steve Cohen’s Point72 Asset Management runs a highly diversified portfolio. As of the end of the March quarter, the portfolio’s net worth was over $41.2 billion, with tech stocks accounting for 17% of the total portfolio.
Unlike long-term value investors like Warren Buffett and Seth Klarman, Cohen moves with speed and adapts quickly. He’s been like this for decades. When he was in Wharton School of the University of Pennsylvania, he would often skip classes to watch stock movements at a local brokerage. He took pride in predicting stock movements based on their direction.
Point72 Brings Macro Teams on Board
Cohen, worth over $19 billion, is yet again adapting to the quickly changing global financial landscape as investors demand steady returns. Earlier this year, it was reported that Cohen and his team is expanding macro teams at Point72 as the global economy resets to the new era of high interest rates. The report said that the fund would establish as many as 51 macro trading teams.
Alphabet Inc. (NASDAQ:GOOG)
Steve Cohen‘s Q1’2024 Stake: $258,046,983
Alphabet Inc. (NASDAQ:GOOG) has become a top horse in the AI race, albeit with reactive approach, as Alphabet Inc. (NASDAQ:GOOG) continues to unleash AI features in its products. Steve Cohen increased his stake in Alphabet Inc. (NASDAQ:GOOG) by 443% in the first quarter of 2024, concluding the period with a $258 million stake in Alphabet Inc. (NASDAQ:GOOG).
Bronte Capital Amalthea Fund stated the following regarding Alphabet Inc. (NASDAQ:GOOG) in its first quarter 2024 investor letter:
“Our biggest position is Alphabet Inc. (NASDAQ:GOOG), the holding company for Google. It is currently about 12 percent of funds under management. This has been a large position for over ten years.
We bought a large position in Google in October 20104, and the stock immediately dropped 11 percent.
That was an astonishingly good purchase and if we had held it all from October 2010 until the end of this month the gain would have been about 1300 percent.
Alas we did not hold it all. We have trimmed it many times – and it is now merely a large position. (We have lived to regret every single trim…)..” (Click here to read the full text)
While Alphabet Inc. (NASDAQ:GOOG) is a notable AI stock pick of Cohen, it’s not the best one.
Alphabet ranks 5th in our list of the 10 Best AI Stock Picks of Billionaire Steve Cohen.
If you are looking for an AI stock that is as promising as Microsoft but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.
Disclosure: None. Is Alphabet Inc. (GOOG) The Best AI Stock Pick of Billionaire Steve Cohen? was originally published on Insider Monkey
