Billionaire Steve Cohen Poured Money Into Amazon, Tesoro, Others in Q2

Steve Cohen is one of the most successful hedge fund managers in the U.S, ranking 72 on Forbes’ list of the World’s Billionaires, with a fortune estimated at $12.7 billion. He founded Point72 Asset Management, a family-controlled investment company, in 2014 as the successor to his hedge fund S.A.C. Capital Advisors, which he founded in 1992 with $20 million. In 2013, the SEC brought charges against Mr. Cohen for failing to prevent insider trading at his fund, to which S.A.C. Capital plead guilty later that year. Mr. Cohen is barred from managing money for outside investors until 2018, according to a settlement he reached with the SEC, and rumors have claimed that he does indeed have interest in doing so again once able.

According to the latest 13F filing reported by the Connecticut-based hedge fund, it manages a portfolio with holdings valued at $14.69 billion. In this article we’ll analyze five of the most noteworthy bullish moves made by the successful family office during the second quarter and delve into the performance of each stock in question to see what Mr. Cohen and his team might see in them.

Hedge funds and other institutional investors allocate significant resources while making their bets and their long-term focus makes them the perfect investors to emulate. This is supported by our research, which determined that following the small-cap stocks that hedge funds are collectively bullish on can help a smaller investor beat the S&P 500 by around 95 basis points per month (see more details here).

Steven Cohen

Amazon.com, Inc. (NASDAQ:AMZN)

– Shares Owned by Point72 Asset Management (as of June 30): 666,620

– Value of Point72 Asset Management’s Holding (as of June 30): $477.04 million

Point72 acquired 536,020 shares of Amazon.com, Inc. (NASDAQ:AMZN), increasing its holding in the company by 410% during the second quarter. The total stake now accounts for about 3.25% of the value of the hedge funds’ equity portfolio. Last month, Amazon reported second quarter earnings that blew past analysts’ forecasts. The e-commerce giant earned $1.78 per share on $30.4 billion in revenue, while the Street was expecting just $1.11 in EPS on $29.55 billion in revenue. Amazon expects an even better top-line in the third quarter, anticipating revenue to come in between $31 billion and $33.5 billion. Recently, Amazon’s competitor Wal-Mart Stores Inc. (NYSE:WMT) acquired web retailer Jet.com, but analysts believe that the new combo will not be able to surpass the burgeoning sales and popularity of Amazon. Shares of Amazon.com, Inc. (NASDAQ:AMZN) have gained over 13% in 2016.

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KAR Auction Services Inc (NYSE:KAR)

– Shares Owned by Point72 Asset Management (as of June 30): 3.26 million

– Value of Point72 Asset Management’s Holding (as of June 30): $136.35 million

Point72 increased its stake in KAR Auction Services Inc (NYSE:KAR) by 127% during the second quarter, buying 1.83 million shares of the company and lifting the total value of its stake in the Indiana-based auction services company to $136.35 million. Earlier this month, KAR Auction posted second quarter earnings which fell short of bottom-line estimates, with diluted EPS coming in at $0.44, though it surpassed revenue targets by a wide margin, with revenue of $771.8 million. KAR Auction Services Inc (NYSE:KAR) shares have gained over 10% in value so far in 2016. Amy Minella’s Cardinal Capital is another notable fund invested in the stock, owning about 1.98 million shares of the company as of June 30.

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On the next page we’ll discuss the rest of the major bullish moves made by Point72 during the second quarter.

Cimarex Energy Co (NYSE:XEC)

– Shares Owned by Point72 Asset Management (as of June 30): 1.10 million

– Value of Point72 Asset Management’s Holding (as of June 30): $131.67 million

During the three-month-period ended June 30, Point72 acquired 558,673 shares of Cimarex Energy Co (NYSE:XEC), slightly more than doubling the size of its holding in the stock. Cimarex Energy, a Denver-based oil and gas exploration company, recently reported second quarter earnings of $0.07 per share, trouncing the consensus estimate of $0.01, while revenue of $299 million also beat estimates by $9 million. Cimarex Energy Co (NYSE:XEC)’s stock has skyrocketed by 47.58% year-to-date. Ric Dillon’s Diamond Hill Capital owns 3.50 million shares of the company as of the end of June.

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Tesoro Corporation (NYSE:TSO)

– Shares Owned by Point72 Asset Management (as of June 30): 1.66 million

– Value of Point72 Asset Management’s Holding (as of June 30): $125 million

Point72 added over 1.62 million shares of Tesoro Corporation (NYSE:TSO) to its portfolio during the second quarter and now owns almost 1.4% of the company’s outstanding shares. Earlier this month, the San Antonio-based petroleum refining company posted second quarter results which surpassed analysts’ estimates despite a 29% fall in profits. The company earned $3.47 per share for the quarter, down from $4.62 during the same quarter of last year. The company was recently roasted by a federal safety board in a detailed report on failing to practice safety measures at one of its facilities, which resulted in serious injuries to 19 employees. Tesoro Corporation (NYSE:TSO)’s stock has lost over 27% in 2016. David Greenspan’s Slate Path Capital owns 995,000 shares of the company as of the end of the second quarter.

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Sally Beauty Holdings, Inc. (NYSE:SBH)

– Shares Owned by Point72 Asset Management (as of June 30): 3.65 million

–Value of Point72 Asset Management’s Holding (as of June 30): $107.44 million

Point72 Asset Management bought around 2.45 million shares of the Texas-based beauty products company during the quarter, increasing the size of its holding by 203%. The fund now owns $107.44 million worth of the company’s stock. Sally Beauty Holdings, Inc. (NYSE:SBH)’s fiscal third quarter revenue of $998.2 million was below analysts’ forecasts, being hindered by foreign exchange headwinds, but diluted earnings per share of $0.46 were in-line with the consensus estimate. Investment firm Piper Jaffray recently reiterated its ‘Neutral’ rating for Sally Beauty Holdings, Inc. (NYSE:SBH), but cut its price target on the stock to $28 from $30. The firm thinks that increased variability quarter-to-quarter and costs are “creating questions” regarding the business’ sustainable growth prospects for the future.

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Disclosure: None