October 14, 2019

SAC Capital Invests in Capital Goods

SAC Capital Invests in Capital Goods

SAC Capital invests in capital goods, reports Dave Friedman at Wall St. Cheat Sheet. http://bit.ly/p7TP7g SAC is a hedge fund run by Steven A. Cohen in Stamford, CT. The firm has $14 billion under management. SAC Capital’s trading activity accounts for 1% of the daily activity of the New York Stock Exchange. Cohen, one of the most successful hedge fund managers in history, and his fund are watched carefully in the industry. In regulatory SEC filings, the hedge fund added to its positions in the capital goods sector. Capital goods, or industrials, is a broad category of the stock market, which includes construction, manufacturing, and defense.

“On 6/30/11 SAC Capital held 3,274,631 shares of Ingersoll-Rand (Symbol:IR), with a market value of $148,700,993, comprising 1.08% of the portfolio. Ingersoll-Rand provides technology services and construction.

The hedge fund held 672,899 shares of Caterpillar (CAT) with a market value of $71,636,827, comprising 0.52% of the portfolio. Caterpillar is a Dow component providing construction machinery.

They held 1,684,529 shares of Fastenal Co. (FAST) with a market value of $60,626,202, comprising 0.44%. Fastenal sells industrial supplies internationally.

Additionally, the hedge fund held shares of Boeing, Honeywell, Quanta Services, Cummins, and Chicago Bridge & Iron Co NV.”

The reported holdings are from late June. Since then, the market has soured, taking capital goods with it. The capital goods sector dropped 15% compared with an 8% drop in the S&P 500. If SAC Capital held onto its positions, the loss would compose less than 2% of the portfolio. Its possible that SAC has reduced its positions since June, especially considering its volume of trading.

Cohen, an avid art collector and prominent philanthropist, is among the wealthiest Americans, with a net worth of $8 billion. He and his firm have imitators, competitors, and the SEC is currently investigating it for links to insider trading. Cohen is known for keeping his moves highly secretive. That’s one reason Wall Street pays attention when SAC Capital invests in capital goods.

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