See What This Infamous Money Manager Has Sold

He sold, but you might want to buy.

May 27, 2014 at 5:45PM

The latest 13F season is here, when many money managers issue required reports on their holdings. It can be worthwhile to pay attention, as you might get an investment idea or two by seeing what some major investors have been buying and selling.

For example, consider Point72 Asset Management, formerly known as SAC Capital Advisors. SAC Capital, run by Steven Cohen, was one of the biggest hedge fund companies around -- until it faced allegations of securities fraud and insider trading and an eventual fine of more than $1 billion. Now the company, which will no longer manage anyone's money other than that of Cohen, his family, and some employees, has a new name. (It's worth noting that Cohen reportedly averaged returns of roughly 30% annually over two decades.)

The company's latest 13F report shows that it reduced or eliminated positions in Broadcom Corporation (NASDAQ:BRCM), Dynavax Technologies Corporation (NASDAQ:DVAX), and Hercules Offshore (NASDAQ:HERO).

Broadcom Corporation is a telecom chipmaker whose stock has averaged 1.4% annual growth over the past decade, dropping about 15% over the past year. It's introducing some new cellular products that it hopes will gain wide acceptance in 2015. If it does, its stock should perform well. If not, it may be "lights out" for the company, per my colleague Ashraf Eassa. Bulls are hopeful about its investments in the infrastructure, mobile, and wearable-computing arena, while bears don't like the company's deteriorating financials and disappointing recent quarterly results. Broadcom's stock yields 1.6%.

Dynavax Technologies, with a market capitalization near $360 million, has fallen by almost 50% over the past year. It's a vaccine specialist, with a lot of hope pinned on its adult hepatitis B vaccine Heplisav, which has experienced some bumps in the approval process and is currently in some late-stage trials. Bulls point out that the company has other promising drugs in its pipeline and think its stock has been overly punished. In its latest quarter, it posted narrower losses than in the year-ago quarter and revenue up 68%.

Hercules Offshore is a shallow-water drilling specialist, serving the oil and gas industry. Its stock is down some 37% over the past year, but its last quarter was very encouraging, with revenue jumping 38% over year-ago levels, in part due to four new international rigs. That revenue was still a bit below expectations, and income from continuing operations dropped. Still, there was ample good news, such as rising dayrates and management's expectations of stabilizing pricing. Hercules is also signing new contracts, such as one worth about $420 million, to provide drilling services for Maersk Oil North Sea UK Limited for five years.

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4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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