Steve Cohen’s Point72 Asset Management disclosed today a huge increase in its stake in Lumber Liquidators Holdings Inc (NYSE:LL). The funds affiliated with Mr. Cohen (Point72 Asset Management, Point72 Capital Advisors Inc., Cubist Systematic Strategies, EverPoint Asset Management) own, in aggregate, almost 1.4 million shares of Common Stock, of which Mr. Cohen can be deemed –indirect- beneficial ownership, up from 66,700 shares disclosed by the end of the second quarter of the year. The position represents 5.2% of the company’s outstanding stock.
Point72 Asset Management is a Connecticut-based group of hedge funds founded and managed by legendary Steven A. Cohen. The firm was created to succeed Mr. Cohen’s famed SAC Capital Advisors, and only manages his personal assets, as well as those of certain eligible employees. It opened for business in the spring with approximately $10 billion in assets under management, and has generated a year-to-date gross profit of about $1.8 billion, according to a Wall Street Journal article. It focuses primarily on discretionary long/short equity investing, and has a slight focus on energy and consumer discretionary stocks, which comprise (combined) about 38.5% of its total equity portfolio. Despite being headquartered in Stamford, Connecticut, Point72 also has offices in New York, Boston, Hong Kong, Tokyo and Singapore.
Lumber Liquidators Holdings Inc (NYSE:LL) is a $1.58 market cap retailer of hardwood flooring, and hardwood flooring enhancements and accessories. As outlined in a recent article, it is still the largest company in the home improvement stores industry even in spite of a 43% drop in its stock price, year-to-date.
Last week, Berkshire Partners’ subsidiary, Stockbridge Partners, led by Robert J. Small, started a new position in Lumber Liquidators Holdings Inc (NYSE:LL), with 1.92 million shares. This stake has a passive nature, and accounts for 7.1% of the company’s common stock. Other major institutional investors betting on the company are Stephen Mandel’s Lone Pine Capital, which owns around 2.62 million shares of the company, as of the end of the second quarter of 2014; and John Lykouretzos’s Hoplite Capital Management, which initiated a position in the company over the second quarter, and last disclosed ownership of 618,474 shares.
Mr. Cohen has been quite active lately. Since the beginning of the month, we have reported an increased stake in Aegerion Pharmaceuticals, Inc. (NASDAQ:AEGR), a new position in CymaBay Therapeutics Inc (NASDAQ:CBAY), and another fresh bet on Applied Genetic Technologies Corp (NASDAQ:AGTC).
But, why trail Mr. Cohen’s picks? Well, his former hedge fund, SAC Capital Advisors, returned around 25% over the last 22 years, and the returns for Point72 are not very different. Needless to say, Mr. Cohen’s picking eye is pretty sharp.
Disclosure: Javier Hasse holds no positions in any stocks or funds mentioned
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