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Steven Cohen, hedge fund manager and founder of Stamford, Connecticut,-based SAC Capital Advisors, with $13.1 billion in assets under management (AUM), is among the most high-profile hedge fund managers. He was dubbed the "Hedge Fund King" in a 2006 Wall Street Journal article and was ranked 94th on Time Magazine’s annual list of the most influential people. His net worth is estimated by Forbes at $8 billion, ranking him as the 35th richest person in the U.S. and 114th richest person in the world. He is also among the highest compensated hedge fund managers, with a $1 billion paycheck in 2005 and again in 2010.
His Hedge Fund, SAC Capital, is among the giants on Wall Street both in terms of assets under management as well as consistent long-term performance at about 30% annual returns over the last two decades. The hedge fund is incorporated offshore in Anguilla, British West Indies, and maintains trading offices in Stamford, CT, and New York City, with satellite offices in San Francisco, Hong Kong, Boston and London. While the 2/20 compensation structure is fairly standard in the hedge fund industry, meaning 2% of AUM and 20% of annual returns, SAC Capital is able to charge a premium of 3/30 to investors in its fund. The fund primarily invests in technology, industrial and retail/consumer goods industries.
Based on a review of available SEC 13-F filings, SAC Capital first bought Savvis Inc. (NASDAQ:SVVS) shares in the quarter ending March 2010, with the bulk of the total 1.26 million shares held as of the latest December 2010 filing having been bought in the quarter ending June 2010. The average purchase price of the shares bought by SAC Capital is estimated at $18.37. With the announced acquisition of Savvis for $40 per share in a cash and stock transaction by CenturyLink, Inc. (NYSE:CTL) on April 27, investors in SAC Capital stand to gain almost 120% on their investment in Savvis Inc. in less than one year.
Steven Cohen is a very savvy investor, and while he works only for investors in his hedge funds, a savvy investor can ride his "coattails" with a knowledge of his holdings, or better still use the list of his holdings as a starting point to conduct their own due diligence, and reap the rewards as many may have with SVVS.
SAC Capital holds over 2,000 positions in its $13.1 billion portfolio. The following three tables list the top 10 holdings in SAC Capital Advisors LP, based on the latest available 13-F filing for the December 2010 quarter. The top 10 new positions opened in dollar value, and the top 10 positions added to in the December 2010 quarter ranked by dollar change in market value over the prior quarter.
Top 10 Positions of SAC Capital
Market Value
(as of 12/31/10 at time of filing)
Percent Outstanding Shares Controlled By Donald Smith & Co.
Novartis AG ADR
$ 625 million
Plains Exploration & Production
$ 321 million
Apple Inc.
$ 304 million
Dendreon Corp.
$ 280 million
Sanofi Aventis
$ 269 million
Human Genome Sciences
$ 213 million
Fossil Inc.
$ 180 million
Pride International Inc.
$ 171 million
Gap Inc.
$ 143 million
Danaher Corp.
$ 131 million
Top 10 New Positions Added in Latest Reported Quarter
Market Value
(as of 12/31/10 at time of filing)
General Electric
$ 113 million
Dillards Inc.
$ 48 million
Fortune Brands Inc.
$ 44 million
SBA Communications
$ 36 million
Commercial Metals Co.
$ 22 million
Warner Chilcott PLC
$ 21 million
Lyondellbasell Industries
$ 19 million
Companhia Energetica De Minas
$ 18 million
Medco Health Solutions
$ 18 million
Mueller Water Products Inc.
$14 million
Top Ten Increased Positions in Latest Reported Quarter
Market Value Change of Added Position Over Prior Quarter
(as of 12/31/10 at time of filing)
Apple Inc.
$ 192 million
Fossil Inc.
$ 177 million
Pride Intl Inc.
$ 162 million
Gap Inc.
$ 143 million
$ 130 million
Human Genome Science
$ 98 million
Walgreen Co.
$ 93 million
Ross Stores Inc.
$ 91 million
Crown Castle Intl Corp.
$ 83 million
Equinix Inc.
$ 81 million
Credit: Historical fundamentals including operating metrics and stock ownership information were derived using I-Metrix by Edgar Online, Zacks Investment Research, Thomson Reuters and The information and data is believed to be accurate, but no guarantees or representations are made.
Disclaimer: Material presented here is for informational purposes only. Nothing in this article should be taken as a solicitation to purchase or sell securities. Before buying or selling any stock you should do your own research and reach your own conclusion. Further, these are my "opinions" and I may be wrong. I may have positions in securities mentioned in this article. You should take this into consideration before acting on any advice given in this article. If this makes you uncomfortable, then do not listen to my thoughts and opinions. The contents of this article do not take into consideration your individual investment objectives so consult with your own financial adviser before making an investment decision. Investing includes certain risks including loss of principal.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.