In this discourse, we delve deep into the top 10 Biotechnology stocks worth investing in as per Billionaire investor, Steve Cohen. Famously renowned for his triumph at SAC Capital which marked him as one of Wall Street’s finest hedge fund managers, Cohen is also the CEO and chairman of Point72 Asset Management. However, he is currently concerned, predicting a 45% possibility of the US economy descending into a recession.
Despite his concern, his keen eyes are fixed on the economic data, using it as a compass to anticipate the market’s next move. Cohen appreciates recent market rallies but is keenly interested in understanding the market’s reactions when the data begins to decline. Such reactions, he believes, would provide significant insight into whether the market is priced accurately.
Cohen’s observations come at a time when the overall market seems to have recovered all losses from April when President Donald Trump initiated a vigorous trade and tariff battle. Even though the broader market continues to be optimistic with the S&P 500 showing a spike of approximately 5%, the biotech index represented by SPDR S&P Biotech ETF (XBI) is grappling with a decline of over 11% in 2025.
Despite these hurdles, Cohen, displaying his investing acumen, continues diversification of the Point72 Asset Management portfolio into the biotech sector. Cohen sees potential in biotech companies as they develop revolutionary drugs, albeit the accompanying high risks these investments entail. He employs an effective combination of long-short equity strategy and industry-aligned approach to help him identify value in the equity market.
This strategic approach has steered the hedge fund’s decent performance, marking a rise from 10.6% return in 2023 to approximately 19% in 2024. With the present economic panorama, a closer inspection is necessary at our selection of the 10 paramount Biotech Stocks worth the investment according to Steve Cohen’s viewpoint.
The compilation of the best Biotech stocks was prepared by analysing Point72 Asset Management’s equity portfolio. Our focus was to identify potential biotech investments that promise a promising long-term outlook. Our analysis led to a ranking of selected stocks based on the equity stake of Point72 Asset Management in each.
Adopting the investing behaviors and top stock picks of premier hedge funds is an effective strategy to surpass the market. According to our quarterly newsletters, this strategy suggests a mix of 14 small-cap and large-cap stocks every quarter and has yielded a whopping return of 373.4% since May 2014 outperforming its benchmark.
Now, let’s turn our attention to the most promising Biotech Stocks to Buy, as suggested by Steve Cohen. Topping the list is IDEAYA Biosciences, Inc. (NASDAQ:IDYA), found nestled in Point72 Asset Management’s Equity Stake at a value of $2.29 Million. This stock is held by a total of 30 Hedge Fund Holders.
IDEAYA Biosciences, Inc. (NASDAQ:IDYA) is an oncology focused, clinical-stage company, which is committed to the discovery and development of targeted therapies for patients with cancer. Through the application of molecular diagnostics, they can identify patient groups who are more likely to benefit from their innovative therapies.
Next, we spotlight Zai Lab Limited (NASDAQ:ZLAB), with Point72 Asset Management’s Equity Stake standing at $3.19 Million. The stock comes along with a total of 26 Hedge Fund Holders. Zai Lab Ltd (NASDAQ:ZLAB) qualifies as an investment-worthy biotech stock.
Zai Lab Ltd (NASDAQ: ZLAB) is an industry-leading biopharmaceutical company, acknowledged for its innovation in health care. It is actively involved in the discovery, development, and commercialization of groundbreaking medicines catering to various medical areas such as oncology, autoimmune disorders, infectious diseases, and neurological disorders.
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