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Steven Cohen founded SAC Capital Advisors in 1992. Before that, he worked in the options arbitrage department at Gruntal & Co. and ran his own trading group at the company for about eight years. On his first day at Gruntal, he made $8000 profit and later he made the company about $100,000 per day. Today Cohen is the 35th richest man in America with an estimated net worth of about $9.3 billion, according to Forbes.

Over the past year, the flagship fund of SAC Capital returned about 8% through the end of November. And the top 10 positions of the 13F portfolio of SAC at the end of September were up 20% since the end of the third quarter, while the market was up 15% in that period. The calculation assumes that Cohen did not increase or reduce his positions in the 10 positions.

Company Name

Ticker

Value (*1000)

Return since Sep

TYCO INTERNATIONAL

[[TYC]]

189565

19.82%

SUNCOR ENERGY INC

[[SU]]

177495

25.85%

BAKER HUGHES INC

[[BHI]]

160076

4.35%

WEATHERFORD INTL

[[WFT]]

144010

24.90%

YUM BRANDS INC

[[YUM]]

134641

25.24%

HESS CORP

[[HES]]

120305

8.00%

PLAINS EXPLORATION

[[PXP]]

119202

58.39%

TARGET CORP

[[TGT]]

115545

2.17%

PRAXAIR INC

[[PX]]

106026

16.70%

TITANIUM METALS

[[TIE]]

99645

6.91%

Tyco International Ltd is the largest position in the latest 13F portfolio of SAC Capital. As of September 30, 2011, the fund had $190 million invested in TYC, up 69% from the end of June. TYC returned 19.82% since the end of the third quarter, versus 14.59% for SPY in the same period. At the end of the third quarter, there are 55 hedge funds with TYC positions. Besides SAC Capital, Lee Ainslie's Maverick Capital also had $100+ million invested in TYC. TYC has a market cap of $22B and a relatively low P/E ratio of 14.89.

The best performing stock among SAC Capital's top ten holdings is Plains Exploration & Production Co . It returned 58.39% so far since the end of September, heavily beating the market by more than 40 percentage points. PXP is an independent oil and gas company. It is engaged in the upstream oil and gas business. At the end of the third quarter, there are 21 hedge funds reported to own PXP in their 13F portfolios. Cohen's SAC Capital increased its PXP stakes by 5% during the third quarter. As of September 30, 2011, SAC had $119 million invested in PXP. D.E. Shaw, Ken Griffin, and Israel Englander are also bullish about PXP. Their funds had $63 million, $31 million and $28 million respectively invested in PXP shares at the end of September.

Suncor Energy Inc , Praxair Inc , Yum Brands Inc , and Weatherford International Ltd also outperformed the market since the end of the third quarter. We like Cohen. Cohen has outstanding track records and his fund generated decent returns even during the market turmoil last year. Our research has shown that by focusing on the top stock picks of successful fund managers like Steven Cohen, investors are more likely to beat the market in the long term.

Source: Steven Cohen's Top 10 Positions Returned 20% Since September