This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

5 Hedge Funds' Top Stocks Soar After 2011 Rout (Update 2)

 

Steven A. Cohen
 

SAC Capital Advisors, the $12 billion hedge fund run by billionaire Steven Cohen, has its sights set on two companies, upscale clothing retailer American Eagle Outfitters (AEO) and coffee purveyor Peet's Coffee & Tea (PEET).

In two 13G filings in January, SAC disclosed two huge investment increases in each firm since the end of the third quarter.

SAC Capital Advisors now owns 9.5 million shares of American Eagle, or 4.9% of its shares, the bulk of that bought in the fourth quarter.

American Eagle's shares are down 9% this year, but have a three-year average annual return of 16%. Its stores are one of the most frequently shopped brands in the teen retailing space and posted strong holiday sales.

And SAC now owns 740,074 shares, or 5.7%, of Peet's, according to the January filing, a huge increase since the end of the third quarter.

Cohen must love coffee, as his fund previously was a big shareholder in Peet's top competitor, the aforementioned Green Mountain Coffee Roasters, but has since sharply reduced its stake or eliminated it.

Peet's shares are up 10% this year and have a three-year average annual return of 48%. The company is a specialty coffee roaster and retailer, with more than 110 coffee shops in seven states.

Peet's shares hit a 52-week high last Friday after a Baird analyst lifted his rating to "outperform" from "neutral," saying he expects fast earnings growth starting later in 2012.

5 of 6

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,098.45 +18.88 0.11%
S&P 500 2,003.37 +6.63 0.33%
NASDAQ 4,580.2710 +22.5760 0.50%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs