Cohen's Shield: 10 stocks the Point72 founder uses to protect his portfolio from overheating

Steve Cohen, founder of hedge fund Point72 Asset Management, believes the current upturn in the markets looks unreliable. He estimates the likelihood of a recession at nearly 45%, and he says indexes could yet return to April lows. "We're all somewhat dependent on news right now, and that's a tricky way to manage money," the investor says.

Cohen's sentiment is supported by Wells Fargo. The bank believes that Donald Trump's unpredictable policies and possible economic surprises could cause new spikes in volatility. "Even though the S&P 500 index is hitting new highs, investors may want to reduce exposure to equities and prepare for unexpected turns," notes Paul Christopher, Wells Fargo's global head of investment strategy.

In this environment, Cohen relies on defensive assets - companies with stable demand and predictable revenue that can remain profitable even in a downturn and political uncertainty. Below are ten stocks he has included in the Point72 portfolio: six of them are in pharmaceuticals, biotechnology and medical services, and four are in the consumer discretionary sector.

Point72 share: $90.35 million

How many hedge funds own stocks: 34

In September 2025, the Swiss Novartis announced the acquisition of the New York-based biotechnology company Tourmaline Bio for $1.4 billion ($48 per share). Thus Novartis strengthens its cardiology portfolio with new solutions for inflammatory heart diseases. The main asset of the deal is a drug for the treatment of systemic inflammation and atherosclerotic cardiovascular diseases, which is undergoing clinical trials. Its potential advantages are higher efficacy and a convenient regimen compared to competitors: one injection per quarter instead of monthly.

Cohen believes this is a defensive scenario: demand for cardiology drugs is stable and little affected by economic cycles, and expanding the portfolio gives Novartis a long-term competitive advantage and predictable revenue.

Point72 share: $96.51 million

How many hedge funds own stocks: 159

UnitedHealth Group is the largest U.S. health insurer, which Steve Cohen categorizes as a solid defensive asset. Despite major shocks - a nearly 60% drop in its stock price from April to August 2025, the unexpected firing of its CEO, the murder of the head of a subsidiary and an investigation into suspected fraud - the company has confirmed the resilience of its business.

In September, Bernstein SocGen analysts reiterated a "buy" recommendation on UnitedHealth shares with a target price of $379 - that's 13% above the current market price. The rationale is the strong preliminary results of the Medicare Advantage Stars program, which allocates insurance plans into five categories based on quality: in 2026, 78% of UnitedHealth customers will be insured in the more expensive "4-star and above" plans. The company also maintained its 2025 earnings outlook despite cost pressures and leadership changes.

Point72 share: $116.96 mln

How many hedge funds own stocks: 46

Keurig Dr Pepper produces beverages, coffee and coffee machines in the global market, but its key segment is the US. In the second quarter of 2025, revenue in KDP's coffee business declined 0.2% to $900 million due to a drop in demand for disposable capsules.

To solve this problem and at the same time strengthen its global position, on August 25, KDP announced the purchase of Dutch JDE Peet's, which produces Jacobs coffee, for $18 billion. The merger should create a global leader in the coffee industry. The company expects synergies of $400 million over three years and the formation of a more sustainable, diversified business. Keurig Dr. Rerrek's management believes that the merger will create two focused entities with clear growth and capital allocation strategies that will deliver value to shareholders in both the short and long term.

Point72 share: $117.79 million

How many hedge funds own stocks: 48

AstraZeneca remains one of the strongholds of the pharma sector in Cohen's portfolio: its business combines innovation and stable demand. The company specializes in the development and sale of drugs for the treatment of cancer, cardiovascular and rare diseases.

In early September, AstraZeneca announced that adding Tagrisso to standard chemotherapy extended the lives of lung cancer patients to 47.5 months - a record for late-stage disease. Tagrisso is already the company's best-selling drug - it generated $6.6 billion in sales in 2024. Its effectiveness in combination with other therapies is now being studied, which could further strengthen AstraZeneca's position in the market.

Point72 share: $120.45 million

How many hedge funds own stocks: 88

Procter & Gamble produces consumer goods, which makes its business less dependent on economic cycles. The Pampers, Tide, Gillette and Oral-B brands provide stable demand and predictable cash flow.

In early September, the company's management announced plans to improve efficiency by restructuring supply chains and introducing new technologies. These measures should offset the slowdown in the global consumer market, which is expected to grow by 2-2.5% in the coming years against an average of 3-4%. Additionally, P&G intends to raise prices on 25% of its U.S. portfolio to mitigate tariff pressure and preserve margins in its key market.

Point72 share: $146.95 million

How many hedge funds own stocks: 119

Eli Lilly is a pharmaceutical company that seeks, develops and manufactures innovative medicines to improve people's health and lives. It has medicines for the treatment of diabetes, obesity and cardiovascular diseases.

In September, the company unveiled the TuneLab platform, a set of artificial intelligence models and proprietary ("proprietary") data from more than $1 billion worth of research. TuneLab helps accelerate the development of new drugs: biotech startups have access to the same tools that Lilly researchers use every day. The platform is already attracting interest in the market: for example, Circle Pharma plans to use it to develop anti-cancer drugs.

Point72 share: $176.74 million

How many hedge funds own stocks: 58

Chewy has strong financial results and steady growth. It is the largest U.S. online retailer in the pet products segment, offering pet food, accessories and prescription drugs, as well as subscription, pharmacy and tele-veterinary services.

On September 10, Chewy released its second-quarter report: sales rose 8.6% year-on-year to $3.1 billion, topping estimates. Profit was up, too: adjusted net was $141 million, up $36 million from a year earlier. Earnings per share rose to $0.34 versus $0.24 a year ago. Growth in the customer base was another driver of success. The number of active customers and their share of spending grew 4.5% year-over-year to 21 million customers and $591, respectively.

Point72 share: $243.86 million

How many hedge funds own stocks: 84

The business of Coca-Cola, the world's largest soft drink maker, is built on a franchise model and a bottling partner network that spans dozens of countries, making it resilient to fluctuations in individual markets.

In early September, the company's management named digital transformation among its priorities. Coca-Cola will make greater use of technology and artificial intelligence to personalize its offerings, improve consumer interaction and increase efficiency. In parallel, the company is strengthening its presence in developing countries. The long-term goal is to increase its beverage market share in these regions by 0.5 p. p., and to achieve this, Coca-Cola is ready to make significant capital investments to support business growth.

Point72 share: $264.3 million

How many hedge funds own stocks: 100

Diversification across segments - from cardiology to neurosurgery - allows Boston Scientific to remain resilient in a challenging economic environment. The company produces devices for diagnosing and treating a wide range of diseases.

On September 8 analysts at Oppenheimer upgraded their rating on the company's stock from Perform to Outperform and reiterated a target price of $125 - up 27% from the current price target. Analysts at the investment firm consider Boston Scientific one of the best growth cases in the MedTech segment due to its robust M&A strategy. The company's financial results support this status, with organic sales up 17.4% in the second quarter and EPS adding 21%. Boston Scientific management expects average annual growth rates to remain in the 11-13% range, emphasizing the sustainability of the business.

Point72 share: $481.23 million

How many hedge funds own stocks: 55

Biogen develops drugs for the treatment of serious diseases where the demand for therapies is stable and largely unaffected by economic cycles. The company specializes in neurology, immunology and rare diseases and is known for creating unique drugs.

Biogen strengthens its portfolio with innovative solutions for the treatment of lupus and Alzheimer's disease. These drugs have undergone late-stage trials and have no direct analogs in terms of mechanism of action, which increases the company's potential for the coming years. On September 5, analyst firm H.C. Wainwright reiterated a "buy" rating on Biogen shares with a target price of $194 (upside 35%), noting the promising pipeline of lupus treatments.

This article was AI-translated and verified by a human editor