Billionaire Steve Cohen Shakes Up His Top Five: Facebook Inc (FB), eBay Inc (EBAY) Sherwin-Williams Company (SHW)

Page 1 of 2
SAC CAPITAL ADVISORSBillionaire Steve Cohen and his SAC Capital hedge fund made some serious moves during the fourth quarter, rearranging their top five holdings completely, including making some big bets on stocks you might not have expected.

Cohen was one of the top five hedge fund earners in 2012 (see all five here), pulling in a nice $1.3 billion during 2012. Cohen founded Connecticut-based hedge fund SAC Capital in 1992 and since then has ran a diversified fund with a focus on fundamental analysis. Cohen’s assets under management are upwards of $14 billion, with $7 billion of that being his own personal money (see all of Cohen’s stock picks)
Sherwin-Williams Company (NYSE:SHW) after a 425% increase in shares owned from the third quarter, is now Cohen’s number one public equity holding. Sherwin was the hedge fund’s ninety-third largest holding in the previous quarter. Sherwin is engaged in the development, manufacture and sale of paint. Although the housing market has been weak, the company has seen a steady demand thanks to a transition from professional contractors to do-it-yourself consumers. Sherwin-Williams Company (NYSE:SHW) hopes to diversify its customer base and expand its operations geographically, which includes growing through acquisitions. In late 2012 the company snatched up Mexico’s leading paint company, Consorcio Comex, for $2.34 billion. Meanwhile, its consumer segment is recovering with improving domestic and international sales of automotive finishes, original equipment manufacturers product finishes, and protective and marine coatings.
The company is also focused on capturing a larger share of its end-markets by increasing its store count. It added 70 new stores in 2012 and plans to add another 70 to 80 stores in 2013. Sherwin-Williams Company (NYSE:SHW) is an impressive company when it comes to returning cash to shareholders, having returned $161 million to its shareholders in 2012 through dividends, and repurchasing 4.6 million shares. This in part has helped performing nicely of late, being up 50% over the last twelve months…

A housing recovery will only further push the company higher. For the fourth quarter, Sherwin posted EPS of $1.17, versus the mere $0.14 the company posted in the same quarter last year. What’s more is that the full-year 2012 EPS came out to $6.64, up  60% year over year (read more about why Sherwin-Williams is a great stock-great company).

News Corp (NASDAQ:NWS)  is SAC Capital’s second largest holding after increasing its position 161% last quarter. The revenue streams of News Corp. is relatively diverse, with 27% from cable network programming, 22% from filmed entertainment, 14% from television and 11% from direct broadcast satellite television. The segment dragging down the company is its publishing unit, 24% of 2012 revenues. News Corp.’s publishes via the likes of Dow Jones and The New York Post. News Corp. will spin off its publishing business as a separate publicly traded entity later this year, where the remaining entertainment company should then enjoy higher multiples and a more advantageous cost of capital. Despite the poor earnings growth that the company has seen over the last five years, which has come in at a negative 15% annually, the future growth is positive and is suppose to be upwards of 15% for the next five years.
After the hedge fund upped its stake by 82%, eBay Inc (NASDAQ:EBAY) now makes up its third largest holdings. eBay’s marketplace segment makes up some 50% of revenues and is seeing a solid turnaround, while its payments segment (PayPal) should be a fundamental driver of future growth — thanks in part to its agreement with Discover and opportunities in the fast-growing mobile payments space. Recent quarterly results showed that EPS came in at $0.70, compared to $0.60 for the same quarter last year.
This earnings growth came on the back of double digit user growth thanks to strong mobile adoption. Going forward, management expects to generate some $0.61 in EPS for the first quarter, well above previous analysts’ estimates of $0.55. (NASDAQ:EBAY) also has an impressive balance sheet with $9 billion in cash, generating some $1.1 billion in free cash flow last quarter (see why eBay is a screaming buy).
Page 1 of 2
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The Most Successful Reality TV Stars

Cheapest Cities to Visit in the US

Most Expensive Summer Camps

Most Expensive Animals in the World

Most Expensive Specialty Crops in the World

Movies That Took Ages to Make

The Longest Hollywood Films Ever Made

Most Expensive Concert Stages

The Richest Bands of all Time

10 Most Corrupt Countries 2013 List

10 Countries with the Highest Quality of Life Index

Most Expensive Mattresses in the World

5 Smallest Countries by Land Area

The Ultimate Heartbreak Songs

Richest Teenagers in the World

10 Most Haunted Places in America

10 Best Places to Retire in Florida East Coast

Top 10 Places to See Before You Die

Top 8 Countries in the World Where Justice Prevails

10 Richest States in America

15 Wealthiest Countries in the World

Richest Singers in the World

Most Expensive Tasting Menu in New York City

Most Expensive Baby Items in the World

Most Expensive Hotel Suites in Vegas

Most Expensive Brunch in New York City

Most Expensive Beef Cuts in the World

25 Best Colleges to Get a Job

Top 10 US Supermarkets

The 25 Most Dangerous Cities in the World to Visit

Most Expensive Xbox Games

Top 11 Cities Where Billionaires Live

Top 10 Most Charitable Companies in America

Most Expensive Seafood in the World

The 10 Wildest Conspiracy Theories

The 10 Best Job Markets in the US

Top 10 Accounting Scandals of All Time

The 25 Biggest Cities in the World

Top 10 Best Paying Virtual Jobs

Most Expensive Leather Shoes in the World

Top 6 Things to Buy in March

The 10 Most Stressful Jobs in America – 2014 List

Top 10 Jobs for Introverted People

Top 10 Honeymoon Destinations in the World

Top 10 Highest Paying Jobs in the World

Most Expensive Day-Care in New York City

The 10 Cheapest Places to Retire Abroad

Top 10 Most Expensive Luxury Cars in the World – 2014

Killer Small Business Ideas

The 50 Best Personal Finance Blogs

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!