Every quarter, fund managers have to disclose what they've bought and sold. Their latest moves can shine a bright light on smart stock picks.
Today let's look at SAC Capital Advisors, run by Steven Cohen. SAC is one of the biggest hedge funds around, with a stock portfolio totaling close to $16 billion in value as of Dec. 31, 2011. A fund doesn't easily grow that large without performing well, and indeed, Cohen has reportedly averaged returns of roughly 30% annually over two decades.
The fund's top holdings as of Dec. 31 were Apple, Weatherford International, and Gilead Sciences. Together they represent just 4.9% of the overall portfolio, though, since SAC encompasses nearly 1,900 holdings.
So what does SAC Capital's latest quarterly 13F filing tell us? Here are a few interesting details:
New holdings include Aeterna Zentaris
SAC upped its stake in lots of companies, such as Chimera Investment
Among the many companies in which SAC reduced its stake are Sirius XM Radio
Finally, SAC unloaded plenty of companies completely, such as InterDigital
We should never blindly copy any investor's moves, no matter how talented he or she may be. But it can be useful to keep an eye on what smart folks are doing. 13F forms can be great places to find intriguing candidates for our portfolios.
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