On May 15th, Steven Cohen’s firm Point72 Asset Management filed its quarterly Form 13F regulatory filing. I reviewed the filing to gain a glimpse into the firm’s large portfolio.
Point72 Asset Management’s stock portfolio totals $23.9 billion according to the latest filing. The list value of stock holdings is up 3.3% when compared to the last quarter. As a benchmark, the S&P 500 was down 1.2% over the same period.
Quarter-over-Quarter Turnover (QoQ Turnover) measures the level of trading activity in a portfolio. Point72 Asset Management’s QoQ Turnover for the latest quarter was 31.9%, so the firm appears to trade a significant percent of its portfolio each quarter.
Point72 Asset Management’s Largest Holdings
The Ideas section of finbox.io tracks top investors and trending investment themes. You can get the latest data on the holdings discussed below at the Point72 Asset Management page. The following table summarizes the firm’s largest holdings reported in the last filing:
The largest stock purchase for the quarter was Facebook, Inc. (NasdaqGS: FB). Point72 Asset Management increased its position in the company by $308.2 million and the stock now represents 2.0% of the firm’s portfolio.
The next largest stock purchase was Wynn Resorts, Limited (NasdaqGS: WYNN). The investment manager increased its position in the company by $273.4 million with the stock now representing 1.4% of the firm’s portfolio.
The third largest stock purchase was Booking Holdings Inc (Nasdaq: BKNG). The investment manager increased its position in the company by $265.0 million with the stock now representing 1.1% of the firm’s portfolio.
If you haven’t heard of Billionaire Steven Cohen, you may already know a little about him if you’ve watched Showtime’s hit series Billions. Damian Lewis plays the show’s main character Bobby Axelrod that very loosely portrays Cohen and his former hedge fund SAC Capital.
The show focuses on a district attorney (played by Paul Giamatti) whose sole focus is to take down Axelrod on securities fraud. Cohen’s hedge fund, SAC Capital, was similarly charged with insider trading in 2013 and ultimately settled out of court for $1.8 billion in the largest securities fraud case ever. The Showtime series is very entertaining, albeit pure entertainment, and not entirely an accurate representation of Cohen.
Investing morality aside, Cohen’s real-life results are undeniable. He was the third highest-earning hedge fund manager of 2012 when he made $1.4 billion.
Steven Cohen has generally shied away from the press even before the SEC’s investigation making it difficult to truly understand his investment approach. However, Jack Schwager shared a rare look into Cohen’s process in 2003 when he published Stock Market Wizards: Interviews with America’s Top Stock Traders. Leading up to the interview with Cohen, Schwager highlighted that “in the seven years he has managed money, Cohen has averaged a compounded annual return of 45 percent.”
Managers with more than $100 million in qualifying assets under management are required to disclose their holdings to the SEC each quarter via 13F filings. Qualifying assets include long positions in U.S. equities and ADRs, call/put options, and convertible debt securities. Shorts, cash positions, foreign investments and other assets are not included. It is important to note that these filings are due 45 days after the quarter end date. Therefore, Point72 Asset Management’s holdings above represent positions held as of March 31st and not necessarily reflective of the fund’s current stock holdings.
However, most can agree that with thousands of stocks traded on U.S. exchanges, doing thorough research on each one is nearly impossible for smaller investors. Leveraging the resources of the largest hedge funds on Wall Street can be a powerful way to narrow down the list.
The ideas section of finbox.io tracks top investors and trending investment themes. You can get the latest data on the holdings discussed above at the Point72 Asset Management page.
Matt Hogan is a co-founder of finbox.io. His expertise is in investment decision making. Prior to finbox.io, Matt worked for an investment banking group providing fairness opinions in connection to stock acquisitions. He spent much of his time building valuation models to help clients determine an asset’s fair value. He believes that these same valuation models should be used by all investors before buying or selling a stock.