Portfolio Spotlight: SAC Capital

The hedge fund's holdings include Research In Motion and Elan.
Publish date:

Updated from 9:01 a.m. EDT

One of the top hedge funds in the country is

SAC Capital Partners

, which also happens to be one of the 15 most-viewed portfolios on



Steven A. Cohen is the manager of this hedge fund, purportedly returning in excess of 40% every year since the fund's inception. SAC has $12 billion under management, and the management fee is an outrageously high 50% of the annual returns, the highest in the industry.

In 2005, Cohen earned more than $1 billion as a hedge fund manager and was ranked the second-highest-paid hedge fund manager by

Traders Monthly


One of SAC's shareholdings is

Research In Motion


, the Canada-based company most noted for being the developer of the BlackBerry. Coverage was recently initiated on the company by First Analysis Securities, which gave it a rating of equal weight. In spite of competition from


(AAPL) - Get Report

iPhone, RIM has continued to do well, with earnings increasing by 120% for the latest quarter on a revenue increase of 102%. The stock has a P/E of 60 and a PEG of 1.02.

RIM is owned by another top money manager,

Navellier & Associates

, a $3.8 billion fund founded in 1980 and managed by Louis Navellier. Navellier also owns

Potash Corp. of Saskatchewan


, which has a PEG ratio of 2.17;

America Movil

(AMX) - Get Report

, with a PEG of 0.56; and the oil and gas company


(ECA) - Get Report

, with a PEG of 2.26.

Another stock that SAC owns is



, a neuroscience biotechnology company that has potential Alzheimer's treatments under development. The company recently announced that it is on track to meet its revenue goals. The company expects to limit its core loss to $50 million or less this year, with revenue expected at about $1 billion.

Elan is also owned by

Eaton Vance Growth Fund

, which has a Morningstar rating of three stars and is managed by Arieh Coll. This capital growth fund has had an average annual return of 20.14% over the last five years. The fund also owns

Foster Wheeler


, with a PEG of 1.46;

Diamond Offshore Drilling

(DO) - Get Report

, with a 0.51 PEG; and

MEMC Electronic Materials


, with a 0.53 PEG.

SAC also owns


(TEN) - Get Report

, the manufacturer of automotive emission control and ride control products. The company just closed a $19 million deal to buy the equipment and inventory of a Delphi plant in Kettering, Ohio. The stock has a forward P/E of 8 and a PEG of 0.95.

Tenneco can be found in the portfolio of the

Oppenheimer Main St Small Cap Fund

, a three-star-rated fund managed by Mark Zavanelli. The fund has had an average annual return of 18.35% over the last five years. The fund also owns


(EME) - Get Report

, with a PEG of 0.86;


(DLX) - Get Report

, with a 1.68 PEG; and


(CHE) - Get Report

, with a PEG of 0.85.

To see more of the fund's top stocks, check out the

SAC Capital Partners

portfolio at


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