Baker Hughes Incorporated (BHI), Whiting Petroleum Corp (WLL), Valeant Pharmaceuticals Intl Inc (VRX): Steven Cohen’s Point72 Loves These Stocks

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.

SAC CAPITAL ADVISORS

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

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 10 Most Expensive States to Own a Car In

Top 10 Business Schools in US: 2014 Rankings

Top 20 Female Billionaires in 2014

6 Movies That You Should Watch to Better Understand The Cold War

Top 15 Best Paying Jobs for Women in 2014

Top 6 Things Rich People Do Differently Every Day

5 Retirement Mistakes To Avoid (and Einstein’s Famous Quote)

11 Smartest People in the World

6 Films About the Financial World You Need To Watch (While “The Wolf” is Not Around)

Warren Buffett and Billionaires Are Crazy About These 7 Stocks

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 6 Tax Scams and How to Protect Yourself

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

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!