Steven Cohen, the billionaire hedge fund investor, is the owner of Point72 Asset Management, previously known as SAC Capital Advisors. The overall data across the last 23 years shows that Mr. Cohen managed to provide annual average returns of 30%. Mr. Cohen’s strategy is simple: he buys a stock and holds it for short-term periods. So, he is a specialist in the stock picking business.
In the last round of 13F filings, Point72 Asset Management reported an equity portfolio valued at $13.08 billion mainly invested in Consumer Discretionary (23.6%), Energy (17.1%) and Technology (15.9%) stocks. Point72 Asset Management’s last 13F filing showed that the fund raised its exposure towards consumer discretionary and health care stocks, but Mr. Cohen reduced his holdings in the energy sector. In this article we will look into Mr. Cohen’s top three energy picks held at the end of 2014.
An interesting point to mention is that it is not a surprise that he reduced his exposure to oil, while oil price keeps falling on the back of excess supply and reduced demand. A recent survey from the Members of the New York Hedge Fund Roundtable concluded that oil prices will remain steady this year. More than a third of the members suggested that the price of a barrel of crude oil would be in the $50 – $60 range by the end of 2015.
In Canadian Natural Resource Ltd (USA) (NYSE:CNQ), the fund cut its stake by 5.0% on the quarter to some 5.5 million shares, valued at $169.87 million. Meanwhile, the stock lost almost 23% during the fourth quarter. Nevertheless, the company still represents one of the top five-largest holdings in Point72’s equity portfolio. Investors seem to have mixed feelings about Canadian Natural Resource Ltd (USA) (NYSE:CNQ), as the latest round of 13F filings showed that some investors were bullish while others had bearish sentiments. George Soros sold out his entire stake that previously amassed 110,700 shares. On the other hand, Rob Citrone’s Discovery Capital Management initiated a stake that contains 1.47 million shares as of the end of 2014. In addition, formidable investors like David Dreman, Jim Simons, Bruce Berkowitz and David Winters have added Canadian Natural Resource Ltd (USA) (NYSE:CNQ) to their equity portfolio during the last quarter of 2014.