Billionaire Steve Cohen’s Latest Stock Picks Include Facebook (FB)

Page 1 of 2

13F filings from hedge funds and other notable investors are several weeks old by the time they are filed, but there are still a couple ways to put the included information to work. The most popular small cap stocks among hedge funds tend to produce an excess of return of 18 percentage points per year, on average (read more about imitating hedge funds’ small cap picks); other strategies are likely possible as well. We can also review filings from top investors and use their stock picks as suggestions for further research, and potential buys if that research justifies taking a position in the stock.

SAC Capital Advisors, managed by billionaire Steve Cohen, and some former employees of the firm have been investigated for insider trading violations but that has not distracted Cohen and his investment team from the markets. SAC recently filed its 13F and here are some themes we noticed in the fund’s investment activities compared to previous filings:

Steven CohenDotcoms. SAC was buying shares of eBay Inc (NASDAQ:EBAY) and Facebook Inc (NASDAQ:FB), and these are now two of the four largest positions reported on the 13F. The fund increased its stake in eBay to 4.6 million shares (from 2.5 million shares three months earlier), and reported a position of 8.5 million shares in Facebook Inc (NASDAQ:FB) after owning a small number of shares at the beginning of October. Both of these companies are priced for growth: eBay trades at 29 times trailing earnings while Facebook Inc (NASDAQ:FB) carries a forward earnings multiple of 36. While Facebook has certainly produced significant revenue growth- up 40% last quarter compared to the fourth quarter of 2011- earnings growth rates have lagged due to higher costs. Tiger Global Management also has a large position in Facebook (find Tiger Global’s favorite stocks). eBay, whose growing payments business includes PayPal, actually experienced a decline in net income in the fourth quarter versus a year earlier but revenue growth remained strong and analysts are generally bullish on the company.

Sherwin Williams. Sherwin-Williams Company (NYSE:SHW) is Cohen’s new top stock pick, with SAC reporting a position of 1.6 million shares. The $17 billion market cap paint and coatings company’s stock price is up 63% in the last year. The stock now carries trailing and forward P/E multiples of 26 and 18, respectively, so it will have to continue to record strong growth in order to justify its current valuation. Sales increased 7% in its most recent quarter compared to the same period in the previous year, and even with margins generally strong we would like to see better performance in evaluating it as a growth stock. Billionaire Richard Chilton’s Chilton Investment Company owned about 680,000 shares of Sherwin-Williams at the end of the third quarter of 2012 (see Chilton’s stock picks).

Find some examples of stocks that the hedge fund was selling last quarter:

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 10 Biggest ‘Gate’ Controversies in History

The 10 States with the Highest Nursing Shortages Leaving Their Hospitals Depleted

The 10 Best Value Investment Blogs that Every Investor Must Read

The 6 Cheapest Boarding Schools in Europe 2015

The 5 Most Expensive Cars To Insure in the World

The 10 Most Common Genetically Modified Foods

10 Self-Made Billionaires Who Came From Nothing

The 10 Most Expensive Cities to Live in North America

The 13 Most Expensive Headphones in the World to Represent

The Top 20 Wealthiest Soccer Teams in 2014

4 BuzzWorthy Cannabis Stocks And Some Smoking Derivative Plays

The 10 Healthiest Fast Food Chains in America to Dine At

The 5 Most Expensive Cat Food Brands You Can Spoil Your Kitty With

The 6 Best eCommerce Platforms for Small Businesses

The 10 Worst Mistakes an Entrepreneur Can Make

The 5 Most OP Characters in League of Legends to Carry Games and Crush Foes With

The 5 Best Foods to Eat Before Running that Will Help You Pound the Pavement

10 Glaring Plot Holes in The Walking Dead that a Zombie-Filled Bus Could Drive Through

The 5 Biggest Celebrity Stoners Who Love Their Reefer

The 10 Most Overrated Movies Of All Time by Out-of-Touch Critics

Top 6 Least Expensive Cruise Destinations For 2015 that Will Take You to Paradise

10 States with Lowest Substance Abuse Rates in America

The 14 Most Watched TV Finales Ever

The 10 Best Selling Role Playing Games of All Time for PC

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

How to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Top 15 Billionaires in 2014

5 Pitfalls To Avoid When Buying a Franchise

Top 20 Medical Schools in the US – 2014 Rankings

4 Business Strategies that Turned Jamie Oliver into the World’s Richest Chef

6 Qualities That Make You A Good Team Player

10 High Paying Seasonal Jobs in America this Holiday Season

The 10 Busiest Shipping Lanes in the World

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!