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.
Valero Energy Corporation (NYSE:VLO) is a particularly interesting case in the fund’s equity portfolio. The position was increased by more than 760% during the October-December period to 2.58 million shares, valued at $127.50 million. The company operates as an independent petroleum refining and marketing company in the Canada, the Caribbean, Ireland, the United Kingdom and the U.S. Compared to where it was 12 months ago, Valero Energy Corporation (NYSE:VLO)’s stock has no significant changes and this is an important reason why some investors decreased their previous holdings.
Although the stake was reduced by 32% in the last quarter, Valero Energy Corporation (NYSE:VLO) is one of the largest positions in the portfolio of Steven Richman’s East Side Capital (Rr Partners). As of the end of 2014, the fund reported holding 3.8 million shares, valued at $188.4 million.
Point72 Asset Management also reported an increased stake in Royal Dutch Shell plc (ADR) (NYSE:RDS.A). The fund reported ownership of 1.52 million shares, adding 1.51 million shares during the fourth quarter, the value of the stake amounting to $101.95 million. Billionaire Richard S. Pzena‘s Pzena Investment Management was another investor that had Royal Dutch Shell plc (ADR) (NYSE:RDS.A) included in its equity portfolio, as the fund reported holding some 7.25 million shares valued at $485.6 million, which makes Pzena the largest shareholder of Royal Dutch Shell plc (ADR) (NYSE:RDS.A) among funds that we track.
The company is one of the world’s largest integrated oil and gas companies and the largest in Europe; operating in more than 100 countries. In the last quarter, Royal Dutch Shell plc (ADR) (NYSE:RDS.A)’s revenue decreased by 15.45% versus the previous quarter. Along with this, earnings per share (EPS) have significantly decreased from the same quarter one year ago to $0.24 from $0.56.
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