Steve Cohen and SAC Capital’s Favorite Stock Picks

Steven Cohen founded SAC Capital in 1992. Its current hedge fund portfolio is valued at over $14 billion. Cohen himself is estimated to have a net worth approximately half that ($8 billion), making him one of the world’s richest men.  Cohen’s success managing SAC Capital’s hedge fund has earned him an impressive reputation and a paycheck estimated at $1 billion annually plus more in bonuses. Cohen’s performance has also prompted investigations of insider trading (See the details). Over the last 18 years, SAC Capital’s hedge fund has produced an astounding 30% average annual return, thanks largely to Cohen and his unique brand of fundamental reasoning and quantitative analysis. In 2010, the fund performed almost a full percentage point higher than the S&P 500 did in the same period (16% vs. 15.1%).

SAC CAPITAL ADVISORS

Since March 31, 2011, SAC Capital’s performance has been even better compared to the S&P 500, boasting a 3.4% return vs. the S&P 500’s 2%. This means that investors who replicated SAC Capital’s stock picks were able to beat the market by 1.5% in less than 4 months. During this time, Cohen enjoyed the greatest return (a whopping 43%) from Green Mountain Coffee Roasters (GMCR). Green Mountain Coffee is responsible for 80% of the market share in single serve beverages like Keurig. Stellar returns on the stock have prompted SAC Capital and other hedge funds, like Philippe Laffont’s Coatue Management (See more on Laffont’s stock picks here), to increase holdings in the coffee giant (Check out more on investments in GMCR).

Fossil Inc. (FOSL), the watch and leather goods manufacturer, also produced strong returns for the SAC Capital hedge fund, 42% during the past 4 months. However, in this case, Cohen earned such a high return after he cut SAC Capital’s position in the company by 52%. This seems to be a trend with hedge funds regarding Fossil stock (Read more about FOSL’s hedge fund involvement). David Keidan (Buckingham Capital Management) and Chuck Royce (Royce and Associates) also opted to reduce their hedge funds’ positions in Fossil.

SAC Capital lost 24% on N X P Semiconductors (NXPI) in spite of the fact that Cohen dramatically increased the hedge fund’s position in the semiconductor company founded by Phillips. SAC Capital’s other losses were more modest; XL Group Plc (XL) produced a negative 12% return, followed closely by Valero Energy Corp (VLO), Textron Inc (TXT) and Alcoa Inc (AA), which each produced a negative 10% return for the SAC Capital hedge fund.

Some skeptics are saying that Cohen has lost his mojo, but we don’t think so. Cohen has helped SAC Capital produce legendary returns over the years. The margin by which his picks are beating the S&P 500 may have declined somewhat, but the SAC Capital hedge fund is still producing higher returns than most other hedge funds (Read about recent hedge fund performance).

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

Best States To Practice Medicine

The 10 Best States to Have a Business

The 12 Most Expensive Apple (AAPL) Apps in the Market

The 10 Richest Billionaires in the World

10 Biggest Kickstarter Failures

The 10 Best Places to Work At

The Top 10 of Google Inc (GOOGL)’s Most Expensive Acquisitions

13 Best Cities to Visit in South America

10 Most Expensive Works of Art of All Time

The 10 Richest Banks in the World

The 10 Best-Paying Jobs in America (2014)

7 Most Expensive Foods in the World

The World’s Top 10 Earning Authors

Five Wicked and Very Expensive Items (and Other “Stuff”) Sold on eBay

10 Biggest Celebrity Bankruptcies

The Top 10 Highest Paid CEOs in 2014

The 10 Most Expensive Real Estate Cities in America

10 Most Expensive States To Live In America

The 10 Best Airlines in the World

The 10 Best-Selling Cars in 2014

The 10 Best Industries to Invest In

The 10 Most Expensive States to Own a Car In

Top 10 Business Schools in US: 2014 Rankings

Top 20 Female Billionaires in 2014

6 Movies That You Should Watch to Better Understand The Cold War

Top 15 Best Paying Jobs for Women in 2014

Top 6 Things Rich People Do Differently Every Day

5 Retirement Mistakes To Avoid (and Einstein’s Famous Quote)

11 Smartest People in the World

6 Films About the Financial World You Need To Watch (While “The Wolf” is Not Around)

Warren Buffett and Billionaires Are Crazy About These 7 Stocks

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top 6 Tax Scams and How to Protect Yourself

Top Businesses to Invest In

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!