As previously reported, Billionaire Steven Cohen earlier this year shut down his fund SAC Capital Advisors and opened Point72 Asset Management, a fund that handles Cohen’s personal wealth and assets. According to the Bloomberg’s Billionaire Index, Cohen’s current net worth amounts to $11 billion. In addition, his new fund has returned 9% this year, significantly beating the average hedge fund return of around 2.5% (Bloomberg). Therefore, in this article, we will take a look at Point72’s first 13F filing -for the second quarter of the year, in order to find out what has been driving the fund’s above-average returns.
The fund disclosed a highly diversified equity portfolio worth more than $15.6 billion. The biggest bet (worth more than $1.2 billion) was placed on SPDR S&P 500 ETF Trust (NYSEARCA:SPY) put options. However, it is stocks – and not ETFs – that interest us the most.
The fund’s second largest position is represented by Baker Hughes Incorporated (NYSE:BHI), a $29.1 billion market cap company that operates in the oilfield services industry. Point72 disclosed ownership of 4.93 million shares of Baker Hughes Incorporated (NYSE:BHI), worth $367 million. This implies that Cohen added 42% to his previous holding in the company (he previously held 3.46 million shares).
Baker Hughes Incorporated (NYSE:BHI)’s stock is up almost 22% year-to-date, and Cohen is not the only one that has been profiting from this upsurge. Edgar Wachenheim’s Greenhaven Associates, the largest hedge fund shareholder of record, declared holding 9.32 million shares by the end of the second quarter, after a slight decrease in its position. The stake is now worth more than $696 million.
Third in line is Whiting Petroleum Corp (NYSE:WLL), a $9.88 billion market cap independent oil and gas company that escalated from the sixth spot in Cohen’s first quarter list. After a 13% increase in his stake, Cohen owns 2.92 million shares of the company, worth approximately $234 million.
As John Paulson of Paulson & Co. predicted recently, Whiting Petroleum Corp (NYSE:WLL) will take over Kodiak Oil & Gas Corp (USA) (NYSE:KOG), acquiring $3.8 billion in stock, and assuming its debt of $2.2 billion. The deal has already been approved by both companies’ Boards, and will make Whiting Petroleum Corp (NYSE:WLL) the largest producer of crude oil in the Bakken Shale (one of the most prolific areas for horizontal drilling and fracking) and Three Forks formations. The stock has gained more than 35% year-to-date, probably on the back of this deal.
As you might figure, Paulson & Co. is amongst Whiting Petroleum Corp (NYSE:WLL)’s supporters; in fact, it is the largest hedge fund shareholder of record, by a wide margin. The fund owns 9.44 million shares of the company, worth more than $758 million.
Last in this list is Valeant Pharmaceuticals Intl Inc (NYSE:VRX), a $36.8 billion market cap specialty pharmaceutical and medical device company that saw Mr. Cohen boost his participation exponentially over the second quarter. By the end of the first quarter, he had disclosed ownership of 8,334 shares of Valeant Pharmaceuticals Intl Inc (NYSE:VRX); by the end of the second quarter, he declared holding 1.52 million shares. This stake, worth roughly $192 million, accounts for 1.2% of his total equity portfolio.
Another major fund betting on Valeant Pharmaceuticals Intl Inc (NYSE:VRX) is Andreas Halvorsen’s Viking Global, which disclosed a 27% increase in its stakes in the company, and now owns 11.83 million shares, worth more than $1.49 billion.
Disclosure: Javier Hasse holds no position in any stocks or funds mentioned