Aaron Cowen‘s Suvretta Capital Management is one of the funds worth tracking. Especially taking into account that prior to founding his own fund, Mr. Cowen served as a portfolio manager at George Soros‘ Soros Fund Management, and Steven Cohen‘s SAC Capital Management. At SAC, Mr. Cowen was also the Chief Investment Officer and co-managed the central investment portfolio, together with Steven Cohen.
According to a Reuters story from January, Mr. Cowen’s short position in J.C. Penney Company, Inc. (NYSE:JCP) provided the fund with solid returns in the past two years. Overall, Suvretta posted gains of almost 9% for the fourth quarter of 2013, and over 26% for the full last year.
In the latest rounds of 13F filings, Suvretta Capital Management disclosed for the first time its equity portfolio, with a value of around $$746.13 million. The portfolio is diversified mainly around Services, Technology and Healthcare stocks. In this piece, we are going to take a look at Aaron Cowen’s largest bets, taking five companies in which Suvretta Capital Management reported largest stakes in terms of value.
On the first spot is Cheniere Energy, Inc. (NYSEMKT:LNG), in which Suvretta reported a $47.78 million stake, which contains almost 1.11 million shares. The stock of Chenier already gained almost 25% since the beginning of the year, and the analysts on average consider the stock as a ‘Buy’, with the mean target price of above $56 per share. Sean Cullinan‘s Point State Capital is one of the largest investors of Cheniere Energy, Inc. (NYSEMKT:LNG), reporting in its latest 13F ownership of around 12.04 million shares.
In Equinix Inc (NASDAQ:EQIX) Suvretta disclosed holding 214,500 shares, the position being worth $38.06 million. Equinix trails a price-to-earnings ratio of almost 100, way above the average for the Internet Software and Services industry average P/E of around 66. The company expects a revenue of $2.38 billion, which represents an 11% increase over the year. Moreover, Equinix Inc (NASDAQ:EQIX) stated that it forecasts EBITDA of over$1.1 billion and cash gross margins of approximately 69%.
Thermo Fisher Scientific Inc. (NYSE:TMO) cones as the third most valuable holding, Suvretta’s stake in the company amassing 322,000 shares, worth $35.86 million. One of the other ‘hedgies’ bullish on the company is Ken Griffin‘s Citadel Investment Group, which during the fourth quarter of last year initiated a long position in the company, which amasses 1.42 million shares. Over the past couple of years, Thermo Fisher Scientific Inc. (NYSE:TMO) managed to beat the consensus estimated EPS, while for 2013, it reported an EPS of $5.42, versus the estimate of $5.36.
Constellation Brands, Inc. (NYSE:STZ) is represented in Suvretta’s equity portfolio by a $33.75 million position, which amasses 479,500 shares. According to analystratings.net website, a couple of days ago, Goldman Sachs lowered Constellation Brands’ rating to ‘Neutral’ from ‘Buy,’ while in February, Citigroup initiated the coverage of the company, also setting a ‘Neutral’ rating for the stock. Since the beginning of the year, Constellation Brands, Inc. (NYSE:STZ) gained around 17%, and trails a P/E of around 9.8.
The fifth most valuable position in Suvretta’s 13F is Google Inc (NASDAQ:GOOG), an obvious choice for a fund that chooses to invest in Technology stocks. Aaron Cowen’s fund holds in its equity portfolio 27,200 shares of Google, worth $30.48 million. The company is on a growth streak, posting solid performance and reporting acquisitions that will expand its businesses, like the latest purchase of Nest Labs for $3.2 billion in cash. Google Inc (NASDAQ:GOOG) has been the most favorite stock among hedge funds as our research shows. In the latest round of 13F filings, with 170 of them reporting the company in their equity portfolios. Paul Ruddock and Steve Heinz‘s Lansdowne Partners reported holding around 974,440 shares of Google Inc (NASDAQ:GOOG), with a total value of almost $1.1 billion.