Steven Cohen's Point72 Asset Management released its quarterly 13F filing with the SEC on February 14th. I take a closer look at the firm's $23.2 billion stock portfolio below. It may offer insight into what Cohen's new hedge fund will be investing in.
Steven Cohen's New Hedge Fund
If you haven't heard of Billionaire Steven Cohen, you may already know a little about him if you've watched Showtime's hit series Billions. Damian Lewis plays the show's main character Bobby Axelrod that very loosely portrays Cohen and his former hedge fund SAC Capital.
The show focuses on a district attorney (played by Paul Giamatti) whose sole focus is to take down Axelrod on securities fraud. Cohen's hedge fund, SAC Capital, was similarly charged with insider trading in 2013 and ultimately settled out of court for $1.8 billion in the largest securities fraud case ever. The Showtime series is very entertaining, albeit pure entertainment, and not entirely an accurate representation of Cohen.
Investing morality aside, Cohen's real-life results are undeniable. He was the third highest-earning hedge fund manager of 2012 when he made $1.4 billion. But as part of the settlement deal, Cohen agreed to manage only his own money with the inability to take outside investment. However, that part of the settlement expired in January and Cohen appears eager to start managing institutional money again. He has reportedly raised as much as $3 billion in outside money from approximately 20 institutions.
It has also been reported that the new hedge fund will continue to operate under the Point72 Asset Management name. So what can investors expect from the new hedge fund? Many imagine that it will closely resemble the current look of Cohen's family office.
So I decided to take a closer look at Point72 Asset Management's current holdings as reported in the firm's 13F filing.
Point72 Asset Management's Latest Form 13F Filing
On February 14th, Steven Cohen's firm Point72 Asset Management filed its quarterly Form 13F regulatory filing. I reviewed the filing to gain a glimpse into the firm's large portfolio.
Point72 Asset Management's stock portfolio totals $23.2 billion according to the latest filing. The list value of stock holdings is up 3.4% when compared to the last quarter. As a benchmark, the S&P 500 was up 6.1% over the same period.
Quarter-over-Quarter Turnover (QoQ Turnover) measures the level of trading activity in a portfolio. Point72 Asset Management's QoQ Turnover for the latest quarter was 29.7%, so the firm appears to trade a significant percent of its portfolio each quarter.
Point72 Asset Management's Largest Holdings
The Ideas section of finbox.io tracks top investors and trending investment themes. You can get the latest data on the holdings discussed below at the Point72 Asset Management page. The following table summarizes the firm's largest holdings reported in the last filing:
| Ticker | Name | Holding ($mil) | % Of Portfolio |
|---|---|---|---|
| TWX | TIME WARNER INC | $601.8 | 2.6% |
| APC | ANADARKO PETE CORP | $450.7 | 1.9% |
| AMZN | AMAZON COM INC | $424.1 | 1.8% |
| BABA | ALIBABA GROUP HLDG LTD | $423.3 | 1.8% |
| SPY | SPDR S&P 500 ETF TR | $380.0 | 1.6% |
| V | VISA INC | $366.0 | 1.6% |
| AABA | ALTABA INC | $350.3 | 1.5% |
The seven positions above represent 12.9% of the fund's total portfolio. Time Warner Inc (NYSE: TWX) is Mr. Cohen's single largest holding with a position worth $601.8 million.
Time Warner operates as a media and entertainment company in the United States and internationally. AT&T Inc. (NYSE: T) originally entered into an agreement to acquire Time Warner for $82.9 billion on October 22nd, 2016. The proposed transaction continues to run into antitrust hurdles and has a trial scheduled to start on March 19th. Maybe Cohen knows something we don't?
Point72 Asset Management's 7 Largest Purchases
I also used finbox.io to find Point72 Asset Management's largest buys last quarter. Here's the list of the biggest stock purchases determined by comparing the last two filings:
| Ticker | Name | Purchased ($mil) | % Of Portfolio |
|---|---|---|---|
| APC | ANADARKO PETE CORP | $275.2 | 1.9% |
| CMCSA | COMCAST CORP NEW | $235.5 | 1.3% |
| BABA | ALIBABA GROUP HLDG LTD | $209.0 | 1.8% |
| REGN | REGENERON PHARMACEUTICALS | $181.0 | 0.8% |
| V | VISA INC | $164.9 | 1.6% |
| H | HYATT HOTELS CORP | $150.7 | 0.7% |
| BUD | ANHEUSER BUSCH INBEV SA/NV | $149.7 | 0.6% |
The largest stock purchase for the quarter was Anadarko Petroleum Corporation (NYSE: APC). Cohen increased his position in the company by $275.2 million and the stock now represents 1.9% of the firm's portfolio.
The next largest stock purchase was Comcast Corporation (Nasdaq: CMCSA). The investment manager increased its position in the company by $235.5 million with the stock now representing 1.3% of the firm's portfolio.
Point72 Asset Management's 7 Biggest Sells
Here's the list of biggest position reductions determined by comparing the last two filings:
| Ticker | Name | Sold ($mil) | % Of Portfolio |
|---|---|---|---|
| SPY | SPDR S&P 500 ETF TR | $637.0 | 1.6% |
| AABA | ALTABA INC | $467.0 | 1.5% |
| DIS | DISNEY WALT CO | $358.5 | 0.6% |
| TWX | TIME WARNER INC | $260.2 | 2.6% |
| AAPL | APPLE INC | $225.3 | 1.0% |
| FB | FACEBOOK INC | $166.5 | 0.8% |
| SPGI | S&P GLOBAL INC | $140.8 | 0.3% |
Interestingly, the largest sale for the quarter was SPDR S&P 500 ETF Trust (NYSEARCA: SPY). Cohen reduced his position in the ETF by $637.0 million and now makes up only 1.6% of his portfolio.
The largest stock sale was Yahoo! Inc. (Nasdaq: AABA). Point72 Asset Management reduced its position in the company by $467.0 million.
The next largest stock sale was Walt Disney Company (NYSE: DIS). Point72 Asset Management reduced its position in the company by $358.5 million in the fourth quarter.
Point72 Asset Management's Recent Price Pull-Back Stocks
To find stocks in the firm's portfolio that may be unpopular at the moment and trading at cheap valuations, I ranked the firm's holdings by price pullbacks. The ranking table below lists the stocks in Point72 Asset Management’s portfolio by stock price performance over the last 30 days.
| Ticker | Name | Price 1-mo Ago | Current Price | % Change 1-mo |
|---|---|---|---|---|
| SLCA | U S SILICA HLDGS INC | $37.79 | $25.11 | -33.6% |
| ADMS | ADAMAS PHARMACEUTICALS INC | $40.79 | $27.68 | -32.1% |
| XEC | CIMAREX ENERGY CO | $126.70 | $95.21 | -24.9% |
| PTEN | PATTERSON UTI ENERGY INC | $24.35 | $18.88 | -22.5% |
| ECA | ENCANA CORP | $13.63 | $10.75 | -21.1% |
| THO | THOR INDS INC | $156.85 | $123.75 | -21.1% |
| FMSA | FAIRMOUNT SANTROL HLDGS INC | $5.86 | $4.67 | -20.4% |
U.S. Silica Holdings, Inc. (NYSE: SLCA) stock price has fallen by -33.6% over the last month. It may be worth taking a closer look at the stock, especially after this recent decline.
Steven Cohen is one of the more controversial money managers that you'll find. But investing morality aside, you cannot deny his superior returns. That's why investors should take a closer look at the stocks mentioned above.
Author: Matt Hogan
Expertise: Valuation, financial statement analysis
Matt Hogan is a co-founder of finbox.io. His expertise is in investment decision making. Prior to finbox.io, Matt worked for an investment banking group providing fairness opinions in connection to stock acquisitions. He spent much of his time building valuation models to help clients determine an asset’s fair value. He believes that these same valuation models should be used by all investors before buying or selling a stock.
His work is frequently published at InvestorPlace, Benzinga, ValueWalk, AAII, Barron's, Seeking Alpha and investing.com.
Matt can be reached at [email protected].
As of this writing, I did not hold a position in any of the aforementioned securities and this is not a buy or sell recommendation on any security mentioned.
