Every quarter, many money managers have to disclose what they've bought and sold, via "13F" filings. 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 reportable stock portfolio totaling nearly $19 billion in value, as of June 30, 2012. 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.
SAC Capital's top holdings, as of June 30, were Ensco plc and Murphy Oil. Together, the top 10 holdings represent just 11% of the overall portfolio, because SAC encompasses many hundreds of holdings.
What does SAC Capital's latest quarterly 13F filing tell us? Here are a few interesting details:
New holdings include Phillips 66
Among holdings in which SAC Capital increased its stake was Kodiak Oil & Gas
SAC Capital reduced its stake in lots of companies, including rare-earth mineral miner Molycorp
McMoRan has been hurt by the low price of natural gas and, like Molycorp and plenty of other companies, has been issuing more shares to bolster its position. Its share count has roughly doubled since 2009. It has also been losing money for several years. Some expect the company to be bought eventually by Chevron, with which it’s already doing business. Its recent quarter was disappointing, with the company pointing to pipeline repairs, shipping delays, and declining gas sales. Bulls are hopeful about its majority stake in a promising Davy Jones well in the Gulf of Mexico.
Finally, SAC Capital unloaded several companies, such as ArcelorMittal
We should never blindly copy any investor's moves, no matter how talented the investor. But, it can be useful to keep an eye on what smart folks are doing. In addition, 13-F forms can be great places to find intriguing candidates for our portfolios.
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