What Does Billionaire Steve Cohen’s SAC See In EQT Corporation (EQT)?

Page 1 of 2

In May, billionaire Steve Cohen’s SAC Capital Advisors filed its 13F with the SEC, disclosing many of its long equity positions in U.S. stocks as of the end of Q1 2013. Even though the information in 13Fs is a bit old by the time it is released, we think there are still a few ways to make use of it. For one, we’ve found that the most popular small cap stocks among hedge funds generate an average excess return of 18 percentage points per year, and think that more strategies are possible as well. We also like to go through filings from top managers to see what big changes they are making in their portfolios. SAC, it turns out, more than tripled the size of its position in energy company and utility EQT Corporation (NYSE:EQT) during Q1 to a total of 4.3 million shares, making it the fund’s largest single-stock 13F holding by market value (see more of Cohen’s stock picks).

The $12 billion market cap EQT Corporation (NYSE:EQT) produces natural gas, natural gas liquids, and oil in the Appalachian Basin; gathers and processes natural gas; and distributes gas to customers in the Appalachian region. The company’s most recent 10-Q shows a fairly even split in operating income among these three segments. Upstream and midstream activities provide 37% of operating income each, with downstream accounting for 26%. Significant improvement in operating income occurred in all three segments in the first quarter of 2013 versus a year earlier, with earnings rising by 52%.

Steven CohenStill, even if we annualize earnings per share figures from Q1 we get a fairly high P/E multiple (of 31), so markets have already accounted for significant future growth. Wall Street analysts are expecting continued growth, with the result being a forward P/E of 26. In other words, SAC would seem to be expecting EQT Corporation (NYSE:EQT) to outperform expectations going forward; it’s possible, for example, that Cohen and his team see the integrated natural gas-focused company as a pure-play investment in higher nat gas prices. Billionaire George Soros reported a position of 3.1 million shares in EQT as of the beginning of April (find Soros’s favorite stocks).

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

10 Top Reasons For Getting Fired

The 3 Best States to Start an LLC

10 Jobs That Allow You to Travel

7 High-Paying Jobs You Can Do From Home

12 Best Cities to Shop in USA

10 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

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!