5 Stocks Steven Cohen and SAC Capital Might Be Forced to Sell

Page 1 of 2

Things do not appear to be getting any easier for Steven Cohen and SAC Capital. In a recent Fox Business scoop, Charlie Gasparino painted a bleak picture for the impending February 15th close of the hedge fund’s redemption window. It appears that many investors might be contemplating pulling their money from SAC, amidst a recent warning by the SEC that the fund could face civil charges over an insider trading probe.

SAC Capital is a Connecticut-based hedge fund that was founded in 1992 by Steven Cohen. The diversified hedge fund uses both fundamental and quantitative-based approaches. The hedge fund manages approximately $20 billion in assets (as of the end of the third quarter), of which it is estimated that near $7 billion is Cohen’s personal capital (see what Steven Cohen’s top moves have been).

Gasparino says that the February redemption date is one to keep a close eye on. He notes that high level executives at SAC have been holding one-on-one meetings with some of its largest shareholders in an effort to relieve concerns. The firm is assuring investors that it will likely pay a large fine but not be indicted. Gasparino still believes that “this is crisis mode,” adding that they “think there’s a very good likelihood they are going to get massive redemptions.”

Titan Advisors has already indicated plans to pull capital from SAC. Although Titan has checked out of Cohen’s fund, one of its largest investors–Blackstone Group–plans to keep its near $550 million position.

Steven CohenThe real issue is: what do these possible redemptions mean? If SAC investors begin to walk away,  the fund might have to sell off some of its major positions to subsidize.

Some of SAC’s biggest positions include Sirius XM Radio Inc (NASDAQ:SIRI), American International Group, Inc. (NYSE:AIG), Apple Inc. (NASDAQ:AAPL), eBay Inc (NASDAQ:EBAY) and Tiffany & Co. (NYSE:TIF).

SAC could consider selling off Sirius now that subscriber growth is expected to slow in 2013. The satellite radio company is forecasted to add 15% fewer subscribers this year versus 2012. Recent news also indicates the approval of Liberty Media to take De jure control of Sirius, giving it the power to elect the majority of the board of directors. From a valuation standpoint, Sirius trades above some of its notable competitors at 4.6x sales, compared to Saga Communications and Canadian Satellite Radio, both of which trade at 1.6x sales. Billionaire Jim Simons is alongside SAC as a top-name investor (check out Jim Simons’ big bets).

Continue reading to see some other stocks that may be in danger of a sale out of Cohen’s portfolio…

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top Businesses to Invest In

Top 5 Things You Might Be Doing Wrong With Your Business

Top 5 Strategic Technology Trends in 2014

Top Rags to Riches Stories

Parenting Behavior That Promotes Future Leaders

Top 5 Mistakes Made by Small Businesses

Top 5 Most Common and Potentially Devastating Financial Blunders

Top 5 Highest Paying Jobs for Web Designers

Top 6 Most Respected Professions that Also Pay Well

Top 5 Pitfalls Investors Should Avoid

Top 6 Lawyers and Policy Makers Under 30

Top 6 New Year’s Resolutions for Entrepreneurs

Top 7 Locations to Check in on Facebook

Top 5 Mistakes made by Rookie eBay Sellers

Top 7 eBook Publishers in 2013

Top 6 Health Industry Trends in 2014

5 Lessons for Entrepreneurs from Seth Godin

Top 5 Success Tips from Jordan Belfort – the Wolf of Wall Street

Best Master’s in Finance Degree Programs

Top 6 Earning Celebrities Over 50

The most expensive sports to play

Top 7 Earning Celebrities Under 25

Best 7 Online Courses to Take: Free Finance MOOCs

Top 6 Bad Habits that Promote Failure

20 Most Valuable Soccer Teams in the World in 2013

12 Most Expensive Countries for Foreign Students

Top 30 Most Influential Women in the World

Top 20 Most Expensive New Year Eve Shows

Top 5 Best Vocational Careers

Top 10 Jobs for 2014 by Salary Gain (Predictions)

Top 5 Digital Trends for 2014

Top 6 Things You Can Do To Increase Your Productivity

Top 9 Trending Smartphones in 2013

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!