Groupon, Knight Capital And More: Steven Cohen’s Major Sells Last Quarter

Page 1 of 2

SAC CAPITAL ADVISORSWhen looking over billionaire Steven Cohen’s recent 13F filing with the SEC, we found five stocks that he and SAC Capital sold out of during 3Q. These include companies that have a cloudy future due to economic uncertainty or a potentially dying business model. Cohen founded SAC Capital in 1992 and now manages around $14 billion in assets. He has returned close to 30% over the past twenty years. Cohen’s firm focuses on both fundamental and quantitative strategies, and we believe the five selloffs are either fundamentally too expensive on a valuation basis, or have long-term demand issues. Steven Cohen was also shaking up his portfolio in other areas last quarter (check out Steven Cohen’s top moves).

Ensco PLC (NYSE:ESV) was Cohen’s largest stock position in his 13F portfolio at the end of the second quarter. Ensco is up over 20% year to date after a rich acquisition of Pride International for $7.2 billion. Cohen might believe that this drilling service company has seen its near term top, and might see interim pressures related to integration and transition to more offshore projects. Even still, with a positive outlook for the oil and gas industry, the selloff was likely not an easy choice for Cohen. In general, companies with a focus on offshore drilling may see increased competition from onshore operators, given the generally low prices we’re seeing in the natural gas market. Another notable billionaire, Ken Fisher – founder of Fisher Asset Management – was also dumping all of his shares of Ensco during 3Q (see Ken Fisher’s newest picks).

Lockheed Martin Corporation (NYSE:LMT) is a notable selloff for Cohen in 3Q following a huge increase – of almost 4,000% – during 2Q. Sales expectations put growth flat in 2012 and 2013 based on decreased government spending. Lockheed does pay a robust dividend that yields 5%, but the defense company is strapped with nearly $2.5 billion in free cash flow from 2012, and now has over $4.6 billion in cash. The defense company only spent $2.4 billion to purchase shares and $1.1 billion to pay cash dividends in 2011. The downside to Lockheed and the weakness in its shares over the interim will be due to lower U.S. defense spending. As a result, Lockheed’s expected long-term EPS growth rate is now below 7% a year.

Archer Daniels Midland Company (NYSE:ADM) predicts only moderate growth for FY2013 (to end in June) due to weakness in U.S. harvesting as a result of the 2012 drought. We believe that the economic slowdown has caused Cohen to reconsider the long-term prospects of this agriculture company. Revenues for FY2013 are expected to come in relatively flat with harvest shortfalls to blame. Archer is also well above other agriculture and food related peers at a 19x P/E, compared to Bunge (12x) and Ingredion (12x). Fellow billionaire Ray Dalio – who founded Bridgewater Associates – also dumped all of his Archer Daniels shares in 3Q (see Ray Dalio’s top bets).

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

The 10 Countries with the Highest Suicide Rates

The 10 Most Technologically Advanced Countries in the World

The 10 Safest Countries in the World to Live in Peace

The 10 Top Selling Smartphones in the World 2014

The 12 Biggest Shopping Centers in the World

The 10 Friendliest Countries in the World

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

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!