Steven Cohen isn't afraid of volatility — and his latest moves show he's diving headfirst into small-cap biotech. The billionaire hedge fund manager's Point72 Asset Management has built new stakes in two clinical-stage companies, betting that their breakthroughs in genetic and antibody therapies could deliver outsized returns.
The timing is notable: both stocks have been on a tear in recent weeks, giving Cohen's portfolio a dose of biotech momentum.
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Invivyd: A Pandemic-Play Revival
On Tuesday, Point72 disclosed a new position in Invivyd Inc. (NASDAQ:IVVD), buying 16.73 million shares worth $17.23 million at an average price of $1.03. Invivyd, focused on antibody-based therapies for infectious diseases, has staged an impressive rebound.
Shares have skyrocketed 106% year-to-date, including a 22% surge in the past month and a 13.7% jump on Thursday, closing at 99 cents. Though still far below its 52-week high of $2.74, the stock has clawed back from a low of 35 cents, reflecting renewed investor faith in its pipeline, including monoclonal antibody candidate VYD222, designed for durability against evolving viral threats.
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Design Therapeutics: Gene Therapy Momentum
Just a day later, on Wednesday, Cohen doubled down on biotech innovation, increasing his firm's stake in Design Therapeutics Inc. (NASDAQ:DSGN) by 62.8% (1.14 million shares). Point72 now owns a stake valued at roughly $5.64 per share, up 24% from its entry price of $4.55. Design Therapeutics has been a quiet outperformer, with shares up nearly 42% over the past month and 19.8% over the past year.
The company's GeneTACTM molecules — aimed at diseases such as Friedreich ataxia and Fuchs endothelial corneal dystrophy — position it as a niche innovator in the gene-targeted therapy space. With a 52-week range between $2.62 and $7.77, investors are watching closely to see if Cohen's bet signals a longer-term re-rating.
Cohen's other biotech wagers on Structure Therapeutics and Entrada may be small-cap plays, but the market response shows they're anything but small in potential. With both stocks surging in 2025, Point72's bet underscores a growing hedge fund appetite for high-risk, high-reward biotech opportunities.
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