Billionaire Steve Cohen’s 10 Mid-Cap Stock Picks with Huge Upside Potential
Steven Cohen, a prominent figure in the hedge fund industry, has made a name for himself with his successful investment strategies. Starting with S.A.C. Capital Advisors in 1992, Cohen later moved on to establish Point72 Asset Management in 2014, where he currently serves as Chairman and CEO. With approximately $36.9 billion in assets under management as of January 1, 2025, Point72 has a workforce of 2,800 employees worldwide and a track record of solid performance, boasting a three-year annualized return of 14.47% for its top 50 stocks.
The current economic landscape in the United States is marked by uncertainty, with concerns about a potential recession looming. Recent data released by the National Bureau of Economic Research indicated a contraction of 0.3% in the US economy’s GDP for the first quarter of 2025, raising red flags among market analysts. However, positive employment data showing a steady unemployment rate of 4.2% and the Federal Reserve’s decision to maintain interest rates between 4.25% to 4.5% have provided some reassurance to investors amidst the economic turbulence.
In times of heightened volatility, investors seek a balanced portfolio to mitigate risks and capitalize on opportunities. Hedge funds like Point72 Asset Management thrive on market inefficiencies, volatility, and sector rotations, adjusting their strategies to align with changing market conditions and investor expectations. By employing a discretionary investment approach across multiple strategies, including long/short equities, global macroeconomic investing, systematic trading, and venture capital & growth equity, Point72 aims to deliver higher returns to its shareholders.
One approach to achieving a balanced portfolio is through mid-cap stocks, which offer a mix of growth potential and stability. Mid-cap companies are often more agile in adapting to economic shifts, fostering innovation and expansion at a faster pace compared to large-cap firms. With the potential to evolve into large-cap companies over time, mid-cap stocks present opportunities for significant capital appreciation. According to S&P Global, the mid-cap S&P index has consistently outperformed the large-cap index since 1994, delivering an annualized return of 12%.
In a recent analysis of Point72’s Q4 2024 13F filings, we identified billionaire Steve Cohen’s 10 mid-cap stock picks with substantial upside potential. One such stock that caught our attention is Seagate Technology Holdings plc (NASDAQ:STX). With a market cap of $19.75 billion, Seagate has been providing data storage technology and infrastructure solutions since 1978. The company offers a diverse portfolio of hardware, including HDDs, SSDs, enterprise nearline systems, video and image HDDs, and network-attached storage drives under various brand names.
Despite concerns about future demand for hard disk drives, one of Seagate’s key products, the company’s strong financial performance has alleviated doubts. In the third quarter of 2025, Seagate exceeded revenue expectations, reporting $2.16 billion, a 30.51% year-over-year growth. Point72 Asset Management increased its position in the company by 51% during the quarter, holding over 1.82 million shares valued at $157,653,026. Looking ahead, Seagate’s management provided revenue guidance of $2.4 billion for the upcoming quarter, reflecting an 11% increase.
While Seagate Technology Holdings plc ranks 8th on our list of Steve Cohen’s mid-cap stock picks with significant upside potential, we believe that AI stocks hold even greater promise for higher returns in a shorter timeframe. As we continue to monitor market trends and hedge fund strategies, our focus remains on identifying opportunities that align with changing market conditions and investor preferences.
In conclusion, Seagate Technology Holdings plc (STX) presents an intriguing investment opportunity, but for those seeking a more promising AI stock with significant growth potential, we recommend exploring our report on the cheapest AI stock currently available. Stay informed and stay ahead of the curve with Insider Monkey’s in-depth analysis and expert insights on the latest market trends and investment opportunities.
