Top 5 Stocks New Mets Owner Steve Cohen Was Buying in Q3

Steve Cohen added Facebook Inc (NASDAQ:FB) to Point72’s portfolio in Q2 and kept buying shares during Q3, growing the size of his stake by 757% quarter-over-quarter. Point72 now owns just under 840,000 FB shares valued at $220 million at the end of September. That position was still dwarfed by the Facebook ownership stakes amassed by several other hedge funds, including Tiger Global’s $2.3 billion position.

Wedgewood Partners, which posted gains of 10.77% in Q3, believes Facebook still trades at a reasonable multiple and notes that the pandemic has accelerated the use of its platform by struggling and shuttered small businesses, which should drive future revenue growth. The fund had this to say about FB in its Q3 2020 investor letter:

“Facebook’s revenues grew +12% constant currency despite the near total shutdown of economic activity during the month of April. The vast majority of Facebook’s revenues are derived from small businesses, many of which have borne the brunt of lockdowns. To combat the sudden disappearance of foot traffic, these businesses are initiating or accelerating the adoption of digital customer acquisition strategies provided by Facebook’s vast ecosystem, including instant access to over 2 billion daily users. We continue to carry Facebook as one of our largest holdings as its value proposition is difficult to copy, yet the stock trades at still somewhat reasonable multiples relative to large cap peers.”