Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Olin Corporation (OLN), Nationstar Mortgage Holdings Inc (NSM): Highlights from Steve Cohen’s Latest Buying Spree

Steve Cohen‘s Point72 Asset Management has disclosed several filings for the end of June, in which it has reported changes to holdings from its equity portfolio. Among the companies mentioned in Point72’s filings are: Olin Corporation (NYSE:OLN)Nationstar Mortgage Holdings Inc (NYSE:NSM), BioDelivery Sciences International, Inc. (NASDAQ:BDSI). Let’s take them one by one and see the changes that the investor has made in his holdings.


A couple of words about Point72 Asset Management. It is a group of hedge funds that is currently managing billionaire Steven Cohen’s personal wealth, after he closed his former firm, SAC Capital Advisors that he founded in 1992. After an investigation by the Securities and Exchange Commission regarding insider trading allegations, the fund pleaded guilty and paid $1.2 billion in penalties and faced the indication of several employees and portfolio managers. As of the end of March, Point72 manages an equity portfolio valued at $14.67 billion, with Visteon Corp (NYSE:VC), EQT Corporation (NYSE:EQT) and Suncor Energy Inc. (USA) (NYSE:SU) representing the largest holdings.

Steve Cohen
Steve Cohen
Point72 Asset Management

We follow hedge funds like Point72 Asset Management because our research has shown that their stock picks historically managed to generate alpha even though the filings are up to 45-days delayed. We used a 60-day delay in our back tests to be on the safe side and our research showed that the 15 most popular small-cap stocks among hedge funds outperformed the S&P 500 Total Return Index by an average of 95 basis points per month between 1999 and 2012. After adjusting for risk, our calculations revealed that these stocks’ monthly alpha was 80 basis points. We have also been sharing and tracking the performance of these stocks since the end of August 2012, during which time they have returned more than 135%, outperforming the S&P 500 ETF by some 80 percentage points (see more details here).

Olin Corporation (NYSE:OLN) is one of the companies that Mr. Cohen is bullish on, as Point72 reported ownership of 4.06 million shares, versus 227,900 shares held previously. In this way, as of the end of June, the investor holds around 5.2% of the company’s outstanding stock. Moreover, the filing added that Point72 acquired shares as Olin Corporation (NYSE:OLN) was closing its merger with the Dow Chemical Co (NYSE:DOW), under the terms of which, Dow has separated a part of its chemical business and merged it with a wholly-owned subsidiary of Olin. Under the terms of the merger agreement, the shareholders of Dow Chemical would receive 50.5% of Olin’s stock, with existing shareholders owning the other 49.5%. According to its latest 13F filing, Point72 holds approximately 954,600 shares of Dow Chemical as of the end of March. Another shareholder of Olin Corporation (NYSE:OLN) is billionaire Israel Englander‘s Millennium Management with 609,900 shares.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.