Steven Cohen’s SAC Capital Advisors revealed late yesterday that the firm now has 9.42 million shares of American Eagle Outfitters Inc. (AEO), giving a 4.9% passive stake ownership. This is a 1056% expansion after SAC Capital Advisors reported 814 thousand shares of American Eagle at the end of September, 2011. American Eagle slumped more than 20% in intraday trading on January 5 when the company cut its Q4 outlook. It’s possible that SAC Capital Advisors made the purchase during that price decline, at about $13 per share. Now AEO is trading at about $14.
According to hedge funds’ most recent SEC filings, Chuck Royce’s Royce & Associates was American Eagle’s largest hedge fund stakeholder last year. The firm increased its position by 9% and reported 14.62 million shares of AEO at the end of September. Cliff Asness’ AQR Capital Management had 4.56 million shares, after a 10% decrease. Martin Whitman’s Third Avenue Management initiated a new position of 1.84 million shares during the third quarter, 2011.
Stamford, Connecticut-based SAC Capital is founded by Steven Cohen in 1992. SAC is a diversified hedge fund that uses both fundamental and quantitative analysis based approaches. Cohen is one of the legendary traders and a billionaire. He is estimated to have an $8 Billion new worth. Steve Cohen has $14 Billion in AUM and returned nearly 30% during the past 20 years.
American Eagle Outfitters, Inc. “is an apparel and accessories retailer that operates more than 1,000 retail stores in the United States and Canada, and online at ae.com. American Eagle Outfitters, Inc. offers clothing, accessories and personal care products. Its online business, AEO Direct, ships to 76 countries worldwide”, according to Google Finance.