10 Stocks Billionaire Steven Cohen Is Buying

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).

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) 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.

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9. Arcos Dorados ( ARCO)

Company Profile: Arcos Dorados, based in Buenos Aires, Argentina, operates and franchises McDonald's ( MCD) restaurants.

Cohen's Investment: SAC Capital bought 903,000 shares of Arcos Dorados during the second quarter, a position that carried a market value of $19 million as of June 30.

Share Price Performance: Since the stock's debut in April, shares are up 16% though trading has been nothing short of a rollercoaster ride. Arcos Dorados shares fell as low as $19.70 in July before rallying to a high of $25.95 earlier this month. Since Cohen reported his holding as of June 30, shares are up nearly 17%.


8. Diamond Foods ( DMND)

Company Profile: Diamond Foods makes nuts and snack products.

Cohen's Investment: SAC Capital purchased 286,000 shares of Diamond Foods during the quarter, worth almost $22 million as of June 30.

Share Price Performance: Diamond Foods has been a very successful investment this year, rallying 36% in 2011. However, since Cohen's ownership disclosure as of June 30, shares of Diamond Foods have tumbled 5%.

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7. Deere ( DE)

Company Profile: Deere makes farming equipment, including lawnmowers, tractors and combines.

Cohen's Investment: SAC Capital bought up 280,000 shares of Deere during the second quarter, worth $23 million as of June 30.

Share Price Performance: Deere has been a tough-luck investment this year, falling almost 8% despite expectations that rising commodity prices would be a boon for the stock. The losses have been equally as bad in the third quarter, falling 7.2% since June 30.


6. Meritor ( MTOR)

Company Profile: Meritor is a global supplier of drivetrain and braking products for cars.

Cohen's Investment: SAC Capital purchased 1.5 million shares of Meritor in the second quarter, which carried a market value of $24 million as of June 30.

Share Price Performance: If Dendreon's 70% drop is the most painful investment for Cohen, Meritor likely ranks a close second. Shares of the company have plunged more than 50% this year, and more than 40% since June 30.

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5. Sanofi ( SNY)

Company Profile: Based in Paris, Sanofiis a global diversified pharmaceutical company that produces prescription and over-the-counter products.

Cohen's Investment: The firm acquired 12.2 million shares of Sanofi during the second quarter through its previous ownership of Genzyme. The position in Sanofi had a market value of $29 million as of June 30.

Share Price Performance: Sanofi may not be a true "buy" for SAC Capital as shares were awarded after Sanofi completed its purchase of Genzyme, but they may still mean losses for the fund. While Sanofi shares are up 9% this year, the stock is down more than 10% since early May and more than 12% since July 1.


4. Buenaventura ( BVN)

Company Profile: Based in Lima, Peru, Buenaventura is a precious-metal explorer and miner. The company processes gold, silver and other metals.

Cohen's Investment: SAC Capital bought up 783,000 shares of Buenaventura during the second quarter, which carried a market value of $29 million as of June 30.

Share Price Performance: Shares of Buenaventura are down 13% this year but, depending on when Cohen bought the stock in the second quarter, he could be holding a winner. After hitting a low of $35.33 in early June, shares have rallied almost 20% to $42.44.

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3. NRG Energy ( NRG)

Company Profile: NRG Energy operates power-generation facilities.

Cohen's Investment: SAC Capital purchased 1.2 million shares of NRG Energy during the second quarter, which had a market value of $30 million as of June 30.

Share Price Performance: NRG Energy has been a strong performer this year, rallying 17% to $22.87. However, if Cohen continued to hold shares of NRG after the June 30 date, the position is down 7%.


2. Grifols SA ( GRFS)

Company Profile: Grifols makes plasma derivatives, IV therapy, enteral nutrition, diagnostic systems and medical materials.

Cohen's Investment: SAC Capital snatched up 8.7 million shares of Grifols during the second quarter, a position that had a market value of $65 million as of June 30.

Share Price Performance: Grifols is another ugly stock chart for Cohen and SAC Capital. Shares are down nearly 6% since the stock's debut in early June. After notching a high of $8.50 in late July, the stock has plunged as low as $6.33 earlier this month.

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1. Cooper Industries ( CBE)

Company Profile: Based in Dublin, Ireland, Cooper Industries is a worldwide maker of electrical products and tools.

Cohen's Investment: SAC Capital purchased nearly 1.3 million shares of Cooper Industries during the second quarter, carrying a market value of $76.4 million as of June 30.

Share Price Performance: Cohen likely isn't have much luck with Cooper Industries if he continues to hold the stock. Shares are down 15% this year and an even greater 17% since July 1.

-- Written by Robert Holmes in Boston.

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Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

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