Billionaire Steve Cohen’s Most Promising Stock Picks

Page 1 of 2

Small-cap and mid-cap stocks don’t get as much attention from bankers, third-party analysts, and the media, which often leaves them less efficiently priced than large- and mega-caps. Hedge funds sometimes take advantage of this by dedicating their research teams to work on these lower-valuation stocks as well, and so often earn substantial alpha from their investments. Retail investors can use smaller-cap stocks that hedge funds reported owning as a list of suggestions which may result in outperformance; we’ve determined that the most popular small-cap stocks among hedge funds can earn about 120 basis points of alpha per month (learn more about our hedge fund small cap strategy). Investors can’t buy every single small-cap stock that any hedge fund likes and so it probably works best to review each pick in search of those with the best potential. Here are five stocks which billionaire Steve Cohen’s SAC Capital Advisors reported owning on its most recent 13F (see the full list of Cohen’s stock picks) with market capitalizations between $1 billion and $5 billion:

Branded and generic drug manufacturer Endo Health Solutions Inc (NASDAQ:ENDP) was SAC’s top pick in that range with the fund reporting a position of 4.6 million shares. The stock price is down 27% in the last year, but sell-side analysts are confident that the company will deliver high earnings in 2013. D.E. Shaw, a large hedge fund managed by David Shaw, also had a large position in Endo at the end of the third quarter (check out more stocks D.E. Shaw liked).

Steven CohenSAC also liked Superior Energy Services, Inc. (NYSE:SPN), with its position of 6.2 million shares at the end of September being much larger than three months earlier. Read more about Superior. Superior is an oilfield equipment and services company which most notably provides services related to offshore drilling. It currently trades at 10 times earnings, whether we consider trailing results or consensus for this year, and its five-year PEG ratio is 0.5 as analysts expect considerable earnings growth over the next several years. We think it has at least some upside potential and could be a good value stock.

Three more stocks SAC owned:

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

50 Crazy Facts About Japan You Won’t Believe

Top 10 Least Expensive Hybrid Cars to Save the Planet With

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

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!