10 Investments Billionaire Steven Cohen Is Making Now

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).

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)

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.

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9. Spectrum Brands ( SPB)

Company Profile: Spectrum Brands is a consumer-products company that makes consumer batteries, pet supplies, electric shaving & grooming, electric personal care, portable lighting & home and garden control products. Its brands include Rayovac, Remington, Spectracide, Hot Shot and Repel.

SAC Capital's Investment: The hedge fund picked up about 257,000 shares of Spectrum Brands last quarter. The stake had a market value of $6.1 million as of Sept. 30.

Share Price Performance: Spectrum Brands looks to be a value play, with the stock down more than 16% this year. Since Cohen's disclosure of ownership on Sept. 30, shares are up 10%.


8. Sanmina-SCI ( SANM)

Company Profile: Sanmina-SCI focuses on engineering and fabricating complex components, such as printed circuit boards, enclosures, plastics and cables.

SAC Capital's Investment: Cohen purchased nearly 1 million shares of Sanmina-SCI in the third quarter, a position that carried a market value of $6.5 million as of Sept. 30.

Share Price Performance: The stock is down 26% this year, which makes the chart look bad overall. However, Sanmina-SCI has rallied more than 26% since Sept. 30.

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7. iShares FTSE Xinhau China 25 ETF ( FXI)

Company Profile: The iShares FTSE Xinhau China 25 ETF seeks investment results that correspond generally to the FTSE China 25 Index, which consists of 25 of the largest and most liquid Chinese companies. The ETF's holdings include China Mobile, China Construction Bank and Cnooc.

SAC Capital's Investment: Cohen bought 215,000 shares of the ETF in the third quarter, which was worth $6.6 million as of Sept. 30.

Share Price Performance: The ETF is down 13% this year but has rallied 21% since Cohen's Sept. 30 disclosure date.


6. First Solar ( FSLR)

Company Profile: First Solar makes solar electric power modules using a proprietary thin-film semiconductor technology.

SAC Capital's Investment: The hedge fund owned about 195,000 shares of the solar company as of Sept. 30. The position was worth $12 million at the end of the third quarter.

Share Price Performance: First Solar shares have tumbled 65% this year along with many other solar stocks. Since Sept. 30, the stock has fallen almost 30%, which was sparked by the CEO's abrupt departure in October and the company's weak outlook.

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5. Consumer Discretionary SPDR ( XLY)

Company Profile: The Consumer Discretionary SPDR seeks to replicate, net of expenses, the Consumer Discretionary Select Sector index. Some of the fund's top holdings include McDonald's ( MCD), Amazon.com ( AMZN) and Disney ( DIS).

SAC Capital's Investment: Cohen appears to be a believer that consumers are going to spend, and he's using the ETF to make that bet more broadly. SAC Capital owned about 450,000 shares of the ETF as of Sept. 30, worth about $15.7 million.

Share Price Performance: The ETF is up nearly 5% in 2011 but more than 12% since the end of the third quarter.


4. Big Lots ( BIG)

Company Profile: Big Lots is a closeout retailer in the U.S.

SAC Capital's Investment: Cohen's fund picked up about 629,000 shares of the discount retailer in the third quarter. The stake was worth almost $22 million as of Sept. 30.

Share Price Performance: Shares of Big Lots have rallied more than 30% this year. Since Sept. 30, the stock is up 17%.

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3. SPDR Gold Trust ( GLD)

Company Profile: The SPDR Gold Trust ETF seeks to replicate the performance of the price of gold bullion. The trust holds gold and is expected to issue baskets in exchange for deposits of gold.

SAC Capital's Investment: Cohen's dabble into the world of gold bugs saw him buy 184,000 shares of the ETF, worth $29 million as of Sept. 30.

Share Price Performance: Despite the modest selloff in gold prices, the gold ETF is still up 25% this year and has added more than 7% since Sept. 30.


2. Marathon Petroleum ( MPC)

Company Profile: Marathon Petroleum is a supplier of gasoline and distillates to resellers and consumers. Its refining, marketing and transportation operations are concentrated primarily in the Midwest, Gulf Coast and Southeast regions of the U.S.

SAC Capital's Investment: The hedge fund purchased 3.4 million shares of Marathon Petroleum last quarter. The stake was worth $91 million as of Sept. 30.

Share Price Performance: Marathon Petroleum shares have fallen 13% since its July split from its parent company. However, shares have rallied a whopping 35% since the end of the third quarter.

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1. Praxair ( PX)

Company Profile: Praxair produces gases and high-performance surface coatings.

SAC Capital's Investment: Praxair was Cohen's biggest new buy in the third quarter. His hedge fund picked up 1.1 million shares that were worth $106 million as of Sept. 30.

Share Price Performance: Praxair shares are up 6% this year and more than 8% since Sept. 30

>>To see these stocks in action, visit the 10 Investments Billionaire Steven Cohen Is Making Now portfolio on Stockpickr.

-- Written by Robert Holmes in Boston.

>To contact the writer of this article, click here: Robert Holmes.

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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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