Based in New York, Laurion Capital Management was founded by Benjamin A. Smith and Sheehan Maduraperuma in 2005, following their departure from JP Morgan, where they worked as managing director in the equity derivatives division and VP, respectively. Their investment strategy is based on market neutral quantitative equity arbitrage and volatility arbitrage. Laurion Capital’s equity portfolio is well diversified, with 17% invested in tech stocks, 16.5% in consumer discretionary and 16% in financial stocks. As of June 30, 2014, the market value of the portfolio is estimated at 4.74 billion, up from the 2.72 billion at the end of the first quarter of 2014. During the second quarter, Smith has made some notable adjustments to the portfolio, including two major new additions, which became his biggest investments.
Benjamin A. Smith’s biggest bet is Weyerhaeuser Co (NYSE:WY), a new addition to Laurion Capital’s portfolio. During the second quarter, Smith has built a position that amasses 3.74 million shares valued at $123 million. Jean-Marie Eveillard, the manager of First Eagle Investment Management, is also bullish on Weyerhaeuser Co (NYSE:WY) and has boosted his fund’s stake by 2% during the second quarter. First Eagle now holds 14.4 million shares, valued at $478 million. Martin Whitman, the manager of Third Avenue Management, is in the same boat, having increased his fund’s investment in Weyerhaeuser Co (NYSE:WY) to 9.37 million shares worth $310 million.
Another new bet is Dollar General Corp. (NYSE:DG), a discount retailer in the United States. In its latest 13F filing, Laurion Capital has reported ownership of 1.16 million shares with an estimated value of $66.5 million. Larry Robbins is also a fan of Dollar General Corp. (NYSE:DG) and has increased his fund’s stake in the company by 26% to amass 8.21 million shares valued at $471 million. Stephen Mandel, on the other hand, has chosen to reduce exposure to Dollar General Corp. (NYSE:DG), cutting his investment by a third during the second quarter. His fund, Lone Pine Capital, currently holds 7.1 million shares worth in excess of $407 million.
Smith is also optimistic about the prospects of Marathon Oil Corporation (NYSE:MRO) and has boosted his fund’s investment in the company by 327%. Laurion Capital Management now holds 541,600 shares valued at approximately $21.6 million. Billionaire hedge fund manager Ken Griffin is also betting big on Marathon Oil Corporation (NYSE:MRO), having increased his fund’s stake by 236% during the second quarter. Citadel Investment Group reportedly holds 4.93 million shares worth $197 million. Cliff Asness and his fund, AQR Capital Management, also hold a significant stake in Marathon Oil Corporation (NYSE:MRO): 2.71 million shares valued at $108 million, as reported in the fund’s latest 13F filing.
Disclosure: none.
