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 9 Most Dangerous Countries for Tourists to Visit

Reign of Terror: The 10 Most Ruthless Politicians in History

On the Move: The 10 Fastest Growing Businesses in 2015

Fast Money: The 10 Highest Paying Fast Food Restaurants

Mixing It Up: The 14 Best Music Mashups of 2014

Rito Pls Buff: The 10 Least Played Champions in LoL Season 4

10 Covers of Popular Songs that are Better than the Originals

Must See TV: The 9 Most Anticipated Shows of 2015

The 15 Biggest Box Office Bombs of All Time

10 Things The World Can’t Stand About Americans

Picture Perfect: The 6 Smartphones with the Best Cameras

The 10 Best Countries To Work In the World

A Profitable Day At The Track: 5 Tips For Betting On Horses

Tearing You Apart: 6 Bad Habits That Ruin Relationships

Learning on the Job: The 6 Biggest Mistakes Parents Make

Shopaholics Rejoice: The 12 Biggest Malls in the World

Fright Night: 10 Horror Movies Based on True Stories

Mach Mania: The 10 Fastest Jets in the World

Military Heavyweights: The 10 Countries with the Most Tanks

All In: The 7 Richest Poker Players in the World

Abracadabra: The 10 Best Magicians in the World

The 10 Richest Asian Countries in the World in 2014

Eyes in the Sky: 10 Things You Need to Know About Drones

Rising Stars: The 6 Best Silicon Valley Startups

Military Muscle: The 5 Most Advanced Armies in South America

All that Glitters: The 7 Most Luxurious Jewelry Brands in the World

5 Things You Didn’t Know About ISIS but Should

Empowering Your Money: The 5 Best Energy Stocks to Invest In

The 11 Best Android Apps You Can’t Get on iOS

The 10 Most Important International Conflicts in 2014

Mood Enhancers: The 20 Most Uplifting Songs of all Time

Lover Beware: The 8 Countries that Cheat the Most

Breath of Fresh Air: The 25 Countries with the Best Air Quality on the Planet

Singles Beware: The 8 Worst Mistakes Made on First Dates

Healthy and Happy: The 10 Countries with Lowest Healthcare Costs

The 6 Best Company Team Building Activities to Build Workplace Camaraderie

Ships Ahoy: The 10 Busiest Shipping Ports in the World

10 Productivity Tips to Save You Time and Help You Do More With Less

Grab a Bite: The Most Popular Fast Food Restaurants in America

Friday Night Thirst: The 10 Most Popular Cocktails in the World

The 6 Greatest Unsolved Mysteries We May Never Figure Out

7 Useless Products You Never Should’ve Bought

The 5 Reasons Why You’re Single and Miserable

The 7 Most Addictive Foods in the World We Can’t Stop Eating (Even Though We Should)

5 Amazing Places You Can Swim with Dolphins

The Top 7 Most Livable Countries In The World

The 10 Most Expensive Baseball Cards Ever Pulled From A Pack

The 5 Easiest Second Languages to Learn for English Speakers

Silver Spoon: The 6 Richest Families in the World

The 20 Countries with the Largest Prison Populations 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!