Billionaire Steve Cohen’s New Picks And Why You Can Profit From Them

Thor Industries, Inc. (NYSE:THO)

Point72 Asset Management added a 1.03 million-share stake in RV maker Thor Industries, Inc. (NYSE:THO) to its portfolio in Q1, with the position valued at just under $100 million. This may be another instance of Cohen and his team finding value on a dip, as shares hit their lifetime high of over $115 on March 5 before shedding 17% of their value by the end of the month. Also of note is the fact that Gabriel Plotkin, a protege of Cohen’s, took an even bigger stake in Thor shortly after that pullback, revealing a 5.5% stake in the company on March 15.

It appears there are some concerns about the growth prospects for the RV market, though SunTrust analyst Michael Swartz is not one of them, expecting the sector to experience solid 4%-8% CAGR over the coming four years. Thors’ acquisition of Jayco last year sent its annual revenue estimates hurtling past its market cap, and that spread has only widened in light of the recent pullback, now standing at nearly $2 billion. Should the sector grow at even a 4% CAGR over the next four years, it’s easy to see the bull case for Thor Industries, Inc. (NYSE:THO), which has a commanding presence in the sector.

Kansas City Southern (NYSE:KSU)

Lastly we come to Kansas City Southern (NYSE:KSU), which Point72 bought 483,600 shares of in Q1. The stock has gained 5.5% in Q2, though that period hasn’t been without its turbulence (I know, that’s an airline stock pun, but bumpy tracks just sounded forced). President Trump’s threat that he would sign an executive order (which he called “major power grabs of authority” while criticizing Barack Obama in a tweet several years ago, despite now signing them at a far faster pace than Obama did) that would remove the U.S from NAFTA sent a jolt through the sector in late-April, but it’s been smooth sailing since (I know, another incorrect pun).

However, NAFTA aside, Kansas City Southern (NYSE:KSU) is still facing some potential headwinds in Mexico, as the country’s federal competition commission found in a preliminary report that KCS and Grupo Mexico were disrupting the private Mexican rail system through various means, including blocking access to their networks and charging inflated prices. If the commission’s final report due later this year reaches the same conclusion, KCS could face sanctions in the country, where it earns about 50% of its revenue and EBITDA.

Be sure to check out Point72 Asset Management’s holdings page for a full, up-to-date listing of the fund’s 13F portfolio positions as of March 31 and click the ‘Get Email Alerts’ button on that page to get portfolio and story updates related to Point72 directly to your inbox the moment they happen.

Disclosure: None