BOSTON ( TheStreet) -- Steven Cohen's SAC Capital, which has suffered catastrophic losses in biotechnology firm Dendreon (DNDN), made more mundane new purchases in the second quarter, including tractor maker Deere (DE - Get Report).
Cohen's Stamford, Conn.-based hedge fund was founded in 1992 and has generated average annual returns of about 30%, according to The Wall Street Journal. As the largest investor in his own funds, Cohen usually earns more than $1 billion a year.
|Steven A. Cohen (SAC Capital)|
The hedge fund is known for its trading-oriented style to equities. For example, Cohen sold out of most of his position in Weight Watchers (WTW) during the second quarter after loading up a few months earlier. Cohen is now hoping his trading skills can dig him out of a hefty loss in his largest holding, Dendreon.
SAC Capital added to its position in Dendreon during the second quarter, lifting the stake by about 400,000 shares to 8.6 million as of June 30. However, Dendreon shares are down nearly 70% since June 30 after the company withdrew its 2011 revenue forecast due to slower-than-expected sales of its Provenge prostate cancer therapy.Cohen, who has been at the center of an investigation by the Securities and Exchange Commission involving insider trading, is reportedly staring at losses of $200 million on the Dendreon position. >>View SAC Capital's Portfolio Hedge funds that manage more than $100 million are required to disclose their equity holdings, options and convertible debt on a Form 13F filed to the SEC within 45 days of the end of a quarter. Funds aren't required to report short positions betting on declines. As SAC Capital is a long-short equity firm, it continued to trade heavily in equities during the second quarter, building up several new positions that Cohen will likely lean on now to make up the Dendreon losses. Overall, SAC Capital reported holdings in 2,033 securities as of June 30, 518 of which were new positions. The firm increased its ownership in 678 securities, including Apple (AAPL - Get Report) and decreased positions in 730, such as Big Lots (BIG). Cohen finally may have been bitten by the gold bug, as his hedge fund revealed in the filing that it owns options to buy shares of the SPDR Gold Trust (GLD). However, Cohen made other bets on several under-the-radar equities. The following pages detail SAC Capital's 10 largest new equity positions in the second quarter, ranked by market value as of June 30.
10. Gen-Probe (GPRO) Company Profile: Gen-Probe develops nucleic acid tests used to diagnose human diseases and to screen donated human blood. Cohen's Investment: SAC Capital established a new position in Gen-Probe by buying up 268,000 shares of the company, which had a market value of roughly $18 million as of June 30. Share Price Performance: The stock rose to a 52-week high of $86.96 in May but has been a losing investment since Cohen reported a stake. Shares of Gen-Probe are down nearly 12% since July 1.