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.
If you're not too excited about InterDigital but still want to profit from the explosive growth of the smartphone industry, check out our special free report, "The Next Trillion-Dollar Revolution," which will introduce you to a much more compelling investment.
Longtime Fool contributor Selena Maranjian, whom you can follow on Twitter here, owns shares of Apple, Gilead Sciences, and Corning, but she holds no other position in any company mentioned. Click here to see her holdings and a short bio. The Motley Fool owns shares of Apple and Corning. Motley Fool newsletter services have recommended buying shares of Gilead Sciences, Corning, InterDigital, and Apple, as well as creating a bull call spread position in Apple. Try any of our Foolish newsletter services free for 30 days. We Fools may not 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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