See What This Infamous Money Manager Has Bought
The latest 13F season is here, when many money managers issue required reports on their holdings. It can be worthwhile to pay attention, as you might get an investment idea or two by seeing what some major investors have been buying and selling.
For example, consider Point72 Asset Management, formerly known as SAC Capital Advisors. SAC Capital, run by Steven Cohen, was one of the biggest hedge fund companies around -- until it faced allegations of securities fraud and insider trading and an eventual fine of more than $1 billion. Now the company, which will no longer manage anyone's money other than that of Cohen, his family, and some employees, has a new name. (It's worth noting that Cohen reportedly averaged returns of roughly 30% annually over two decades.)
The company's latest 13F report shows that it established or added to positions in Rackspace Hosting , Suncor Energy , and Zynga, Inc. .
Rackspace Hosting is focused on web hosting and cloud services, and its recent first-quarter results were strong, with revenue and earnings growing by double digits over year-ago levels. However, it has been losing market share to formidable, deep-pocketed competitors whom it has not yet been able to match with significant price cuts. The stock jumped recently on reports that Rackspace is exploring options such as being acquired, but my colleague Brian Nichols doesn't see it as an attractive target.
Suncor Energy, Canada's largest energy company, has been shifting its focus from low-priced natural gas to more profitable oil and is also investing significantly in renewable energies. Its integrated business model (including refining) is boosting the profitability of its oil sands production, but it may take a hit if some sizable proposed pipelines aren't built. Suncor has been benefiting lately from rising heavy crude oil prices in Canada. Bulls like its improving efficiency and production growth, as well as its rising margins. Suncor Energy stockyields 2.2% and has been increasing its dividend aggressively.
Zynga has enjoyed success with its popular Zynga Poker, Words with Friends, and FarmVille 2 games. Bears don't like the company's dependence on a few key games and wonder how well it will be able to monetize its offerings, since the vast majority of players play for free. They also don't like declining revenue and dilution from a rising share count. The company has been struggling and laying off workers, but its last earnings report was promising, suggesting that a turnaround may be happening, especially if its investments in mobile gaming pay off. Building game franchises is one of its edges, delivering more reliable revenue than competitors with single hits.
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The article See What This Infamous Money Manager Has Bought originally appeared on Fool.com.Longtime Fool specialistSelena Maranjian, whom you can follow on Twitter, has no position in any stocks mentioned. The Motley Fool recommends Rackspace Hosting. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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