Steven Cohen's Greatest Bets in Q2

Point72 Asset Management has recently filed its latest 13F form with the SEC, which revealed that at the end of June, the value of the firm’s public equity portfolio stood at $14.44 billion, down slightly from $14.67 billion at the end of March. A total of 296 new positions were initiated during the quarter, the largest of them being in Halliburton Company (HAL), Eclipse Resources Corporation (ECR) and EOG Resources, Inc. (EOG).

Steven A.

Cohen is a billionaire hedge fund investor, who is the founder of SAC Capital Advisors, a Stamford, Connecticut-based hedge fund that he continues to manage.

During the June quarter, Point72 Asset Management acquired some 250,000 shares of Halliburton (HAL) valued at $10.77 billion, a 12.500.000% increase from the two shares previously held in the first quarter. So far this year, the stock price lost 6.2%, which is not so bad comparing it with the 15.75% since Apr. 02.

The past months, Halliburton and Baker Hughes (BHI) announced the agreement to combine in a stock and cash transaction. Halliburton needs to divest business as part of regulatory conditions, and the Justice Department determined that it will have to find a single buyer.

According to Yahoo! (YHOO) Finance, the estimated one-year target share price is $ 51.45, and the current market prices are at $36.90). The upside potential from price appreciation would be 39.4%. Also, the dividend yield is at 1.9%.

Ken Griffin’s Citadel Investment Group is the third-largest stockholder of the company as of June 30, holding about 8.29 million shares valued at $356.88 million. This guru has also upped his stake in the stock by 294%.

In Eclipse Resources Corporation (ECR), the fund increased the position by 911.967%, with about 2.74 million shares valued at $14.39 million. Eclipse Resources is an independent exploration and production company, which acquires and develops oil and natural gas properties in the Appalachian Basin. The company owns interests in the Utica Shale and Marcellus Shale areas. Some analysts think that once natural gas breakout the firm will have an interesting upside move.

Ken Griffin is the largest stockholder of the company, holding about 9.1 million shares valued at $47.91 million as of the end of June.

The third-largest new addition to Cohen’s portfolio was EOG Resources (EOG), adding 2.78 million shares, an increase of 9.913%, to reach 2.80 million shares, valued at $245.47 million.

The giant’s stock price has dropped to 52-week lows as WTI has dropped below $40/barrel. Despite this, the company is making efforts to reduce costs and improve operational efficiency, to achieve a better productivity, which should widen margins even in an adverse environment.

Ken Griffin is also the largest stockholder of the company, holding about 5.38 million shares valued at $470.941 million as of the end of June.


Published on Sep 15, 2015
By Omar Venerio
Capital Markets, Derivatives and Financial Management Professor, Master in Finance and CFA candidate. I am an independent trader of stocks and options and passionate about the stock market.

Copyrighted 2016. Content published with author's permission.

Posted in ...