BOSTON ( TheStreet) -- Steven Cohen's SAC Capital, which has suffered catastrophic losses in biotechnology firm Dendreon (DNDN), made more than 300 new bets in the third quarter, including the popular SPDR Gold Trust ETF (GLD) and industrial gas supplier Praxair (PX - 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 his entire position in Arcos Dorados (ARCO) during the third quarter after first buying it a few months earlier. Cohen is now hoping his trading skills can dig him out of a hefty loss in his largest holding, Dendreon. Tyco International (TYC) remains Cohen's largest wager with a market value of nearly $190 million as of Sept. 30.SAC Capital nearly eliminated its position in Dendreon during the third quarter, slashing the stake by about 8.4 million shares to only 241,000 shares as of Sept. 30. Dendreon shares are down nearly 80% this year after the company in August 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 now working his way out of the Dendreon mess with 331 new positions. Hedge fund and investment managers who manage more than $100 million are required to disclose their equity holdings, options and convertible debt on a Form 13F filed to the Securities and Exchange Commission within 45 days of the end of a quarter. Funds aren't required to report short positions betting on declines. Cohen ended the third quarter with 1,736 reported holdings with a market value of $11.2 billion >>View SAC Capital's Portfolio SAC Capital is a long-short equity hedge fund. The firm increased its ownership in 718 securities, including Target (TGT) and Dollar General (DG), and decreased positions in 679, including Apple (AAPL) and Ingersoll-Rand (IR). Cohen's newest holdings are the ones most interesting to investors as they could pull his hedge fund out of the Dendreon hole for the rest of the year. The following pages detail SAC Capital's 10 largest new equity positions in the third quarter, ranked by market value as of Sept. 30.
10. Colgate-Palmolive (CL - Get Report) Company Profile: Colgate-Palmolive is a consumer-products company. It has market positions in six product categories: consumer batteries, pet supplies, electric shaving & grooming, electric personal care, portable lighting & home and garden control products. Its brands include Colgate, Palmolive, Ajax, Irish Spring, Murphy Oil and Speed Stick. SAC Capital's Investment: Cohen's fund bought 66,000 shares of Colgate-Palmolive in the quarter, which had a market value of $5.9 million as of Sept. 30. Share Price Performance: Colgate-Palmolive shares are up a solid 10% this year, although the stock is flat since Sept. 30.
Check Out Our Best Services for Investors
Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts
Check Out Our Best Services for Investors
Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
Every recommendation goes through 3 layers of intense scrutinyquantitative, fundamental and technical analysisto maximize profit potential and minimize risk.
Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.