Billionaire Steve Cohen Bought Medical Device Stock ArthroCare

Page 1 of 2

SAC CAPITAL ADVISORSSAC Capital Advisors isn’t going to let the current speculation and investigation into insider trading by past employees of the fund interfere with its investing activities. A recent 13G filed with the SEC shows that the fund, which is managed by billionaire Steven Cohen, owns 1.6 million shares of medical device company ArthroCare Corporation (NASDAQ:ARTC). This gives it 5.6% of the shares outstanding. ArthroCare is best known for products which help treat orthopedic and soft tissue conditions. SAC had owned about 400,000 shares of the company at the beginning of October, and that had been an increase of 250% from the size of its position at the end of June (check out more of Cohen’s stock picks and read our latest report on the insider trading probe). As such this seems to have been a fairly recent buy by Cohen and his team, and with the stock about flat since the end of September investors have the opportunity to buy in at a similar price.

ArthroCare Corporation has a market capitalization of a little over $900 million; it averages about 140,000 shares traded daily, and has a current market price of about $33 per share, giving it close to $5 million in average daily dollar volume. The company’s most recent 10-Q showed a small increase in product sales compared to the third quarter of 2011. Because ArthroCare did not report as much in exit, investigation, and restatement costs, earnings were up substantially from a year ago. However, for the fuller year, income seems to be more steady and it looks to us like the company merely had a number of one-time charges in Q3 2011- there hasn’t been much actual growth. A little over two-thirds of the company’s business comes from the United States. At the current stock price, ArthroCare trades at 22 times forward earnings estimates. This is a valuation at which we’d expect to see substantial growth in the company’s business.

Healthcor Management, a healthcare-focused hedge fund managed by two former SAC employees (Arthur Cohen and Joseph Healey), reported owning nearly 2 million shares of ArthroCare Corporation at the end of September, making the stock one of the fund’s ten largest holdings by market value (see what other healthcare stocks they thought were good investments). Healthcor had been increasing its stake in the company earlier this year. Renaissance Technologies, whose founder Jim Simons is now a multi-billionaire thanks to the fund’s success, had reported owning about 400,000 shares though this had been a 15% decrease from three months earlier (find more stocks that Renaissance was trading).

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

Qihoo 360 Technology Co Ltd (QIHU), Actavis plc (ACT), Yahoo! Inc. (YHOO) Among 20 Long Ideas from Sohn Canada

The 10 Laziest Countries in the World

The 10 Most Polluted Countries in the World

The 10 Most Dangerous Cities in America 2014

The Top 10 Gold Producing Countries in the World

The 10 Tallest Buildings in the World

The 10 Richest Stand Up Comedians in the World

The 10 Fattest Countries in the World

The 5 Best Summer Jobs for Teens

The 10 Most Religious Countries in the World Keeping the Faith

The 10 Most Educated Countries in the World

The 10 Most Popular Cell Phones in the World

The 10 Drunkest Countries in the World

The 10 Most Expensive Private Schools in the World

The 10 Smallest Countries in the World

Walking Dead Season 5 Spoilers You’ll Wish You Didn’t Know

The 10 Poorest Countries in the World

The 10 Greenest Countries in the World

The Top 10 Countries with the Highest Population in the World

The 10 Most Visited Countries in the World

The Top 10 Star Wars Characters in the Iconic Series

The 10 Most Expensive Android Phones in the World

5 Reasons Why The Illuminati Is Real and a Threat to Society

The 6 Scariest Halloween Costumes Ever Screamed At

The 4 Biggest Hedge Fund Managers in the World Today

The 15 Most Densely Populated Countries in the World

The 10 Biggest Tea Drinking Countries in the World

Top 6 Ways to Improve Your Checkout Process and Close Sales

The 5 Most Profitable Online Businesses You Can Start Today

The 20 Most Profitable Hospitals in the US

The 5 Most Profitable Home Businesses to Start

The 7 Teams that Will Win the Stanley Cup in 2015

The Top 10 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

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

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!