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5 Stocks Top Earners Steven Cohen And David Tepper Agree On

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5 Stocks Top Earners Steven Cohen And David Tepper Agree On


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These gurus are among the top ten most profitable hedge funds.

Earlier this month, the 21st annual Institutional Investor Rich List showed hedge fund giant Steven Cohen (Trades, Portfolio), head of Point72 Asset Management and Appaloosa Management’s David Tepper (Trades, Portfolio) the biggest earners of 2021 one of them. tied for fifth last year.

The list of top-earning fund managers found that the top 25 hedge funds had a combined income of $26.64 billion last year.

Other well-known investors who made the top 10 after GuruFocus include Renaissance Technologies Principal Jim Simons (Trades, Portfolio), Citadel’s Kenneth Griffin, Third Point Principal Daniel Loeb (Trades, Portfolio) and Ray Dalio (Trades, Portfolio) , Portfolio), co-founder of Bridgewater.

Breaking the streak of the past few years, Tepper made $1.6 billion in 2021, making him No. 6, while Cohen is No. 7 with $1.4 billion. Because of their strong performance, investors may be interested to see where these two gurus are looking for value opportunities.

Cohen’s Stamford, Connecticut-based firm executes long-short strategies, including fundamentals, bottom-up research processes, macro investments and insights to generate superior risk-adjusted returns.

By contrast, Tepper focuses on distressed debt. After becoming owner of the Carolina Panthers professional football team, he announced in 2019 that he would return money to investors and convert his New Jersey-based hedge fund into a family office. Therefore, he mainly manages his own assets.

While Cohen and Tepper have slightly different approaches to investing, they have a lot in common. According to the GuruFocus Aggregated Portfolio, an advanced feature based on 13F files, both masters are in Meta Platforms Inc. (FB, Financial), Amazon.com Inc. (AMZN, Financial), Micron Technology Inc. (MU, as of Q4 2021) Finally, Financial), Macy’s Inc. (M, Financial) and Occidental Petroleum Corp. (OXY, Financial) and several others.

meta platform

Tepper trimmed his stake in Meta Platforms (FB, Financial) by 3.72% in the fourth quarter, while Cohen trimmed his holdings by 31.58%. The Masters have a stock portfolio weight of 10.33% in stocks.

The Menlo Park, Calif.-based social media company, formerly known as Facebook, has a market value of $554.35 billion; its shares traded at around $203.66 on Thursday at a price-earnings ratio of 14.86, a price-book ratio of 4.49, and a price-to-sales ratio. is 4.95.

The GF value line currently indicates that the stock is significantly undervalued based on its historical ratios, past financial performance, and future earnings forecasts.

Since the second quarter of 2020, Cohen’s investments have grown about 12%, according to GuruFocus. Tepper’s investments have grown 18.58% since the third quarter of 2016, according to GuruFocus.

Among the gurus investing in Meta Platforms, Ken Fisher (Trades, Portfolio) has the largest stake at 0.34% of its outstanding shares. Baillie Gifford (Trade, Portfolio), Dodge & Cox, Frank Sands (Trade, Portfolio), Chase Coleman (Trade, Portfolio), Spiros Segalas (Trade, Portfolio), First Eagle Investment (Trade, Portfolio), Chris Davis (Trades, Portfolio), Ruane Cunniff (Trades, Portfolio), Philippe Laffont (Trades, Portfolio) and many other gurus also own the stock.

Amazon

In the fourth quarter, Cohen increased his stake in Amazon (AMZN, Financials) by 2,446.37%, while Tepper kept his position unchanged. Their stock portfolio weight is 7.71%.

The Seattle-based e-commerce company has a market capitalization of $1.56 trillion; its shares traded at around $3,062.83 on Thursday with a price-earnings ratio of 47.53, a price-book ratio of 11.35, and a price-sales ratio of 3.38.

According to the GF value line, the stock is currently moderately undervalued.

GuruFocus estimates that Cohen has returned 28.11% since the first quarter of 2017, while Tepper has returned 52.77% since the first quarter of 2019.

Fisher owns the largest stake in Amazon, at 0.43% of its outstanding shares. Other top master investors include Baillie Gifford (Trades, Portfolio), Sands, Segalas, Steve Mandel (Trades, Portfolio), Warren Buffett (Trades, Portfolio), Al Gore (Trades, Portfolio), PRIMECAP Management (Trades, Portfolio), Coleman and Andreas Halvorsen (Trades, Portfolio).

Micron Technology

After selling Micron Technology (MU, Financial) in the third quarter, Cohen entered a new stake in the fourth quarter. Tepper remains the same. Masters has a portfolio weight of 7.42% in stocks.

The Boise, Idaho-based chipmaker has a market cap of $87.09 billion; its shares traded at around $78.22 on Thursday at a price-earnings ratio of 12.07, a price-book ratio of 1.91 and a price-sales ratio of 3 .

According to GF Value Line, the stock’s current valuation appears to be quite reasonable.

So far, Cohen has earned an estimated 24.62% on his investment, according to GuruFocus. Since the fourth quarter of 2016, Tepper’s ROI has been around 12.9%.

With a 3.68% stake, Primecap is the company’s largest guru shareholder. Li Lu (Trades, Portfolio), Ruane Cunniff (Trades, Portfolio), Simons’ Renaissance Technologies, Seth Klarman (Trades, Portfolio), Mohnish Pabrai (Trades, Portfolio) and Parnassus Endeavor Fund (Trades, Portfolio) also have significant investments in Micron .

Macy’s

During the fourth quarter, Cohen increased his Macy’s (M, Financial) position by 64.41%, while Tepper increased his stake by 44.23%. Their stock portfolio weight is 6.92%.

The iconic New York-based department store chain has a market value of $7.96 billion; its shares traded at around $27.03 on Thursday with a price-earnings ratio of 5.73, a price-book ratio of 2.13 and a price-sales ratio of 0.33.

The GF value line indicates that the stock is currently significantly overvalued.

Since its inception in the second quarter of 2021, GuruFocus estimates Cohen’s investment has received 8.82%. Tepper has gained about 42.28% since the fourth quarter of 2020.

Among the stock-investing gurus, Tepper owns the largest stake, at 3.37% of its outstanding shares. Macy’s is also owned by Yacktman Asset Management (Trades, Portfolio), The Simons Company, Jana Partners (Trades, Portfolio), John Hussman (Trades, Portfolio), Jeremy Grantham (Trades, Portfolio) and Joel Greenblatt (Trades, Portfolio) investment portfolio).

western oil

Cohen added 1,060.96 shares of Occidental Petroleum (OXY, Financial) in the fourth quarter, while Tepper cut 0.6%. The stock has a total weighting of 4.98% in its equity portfolio.

The Houston-based oil and gas producer has a market capitalization of $54.06 billion; its shares traded around $57.49 on Thursday with a price-to-earnings ratio of 37.07, a price-to-book ratio of 5.08, and a price-to-sales ratio of 2.09.

According to the GF Value Line, the stock is currently severely overvalued.

Cohen’s investments have grown an estimated 0.84% ​​since the first quarter of 2021, according to GuruFocus. Tepper’s investments have grown 214.59% since the fourth quarter of 2020.

Buffett is the company’s largest guru shareholder, holding 12.66% of its outstanding shares. Other gurus who have made large investments in Occidental include Dodge & Cox, Carl Icahn (Trades, Portfolio), Simons’ company, John Paulson (Trades, Portfolio), Smead Value Fund (Trades, Portfolio) and T Rowe Price Equity Income Fund ( transactions, portfolios).

Additional common holdings and portfolio composition

Other stocks owned by both Cohen and Tepper as of December 31, 2021 include T-Mobile US Inc. (TMUS, Financial), PG&E Corp. (PCG, Financial), General Motors (GM, Financial), The Energy Select Sector SPDR Fund (XLE, Financials) and Microsoft Corporation (MSFT, Financials).

Cohen’s $24.82 billion equity portfolio consisted of 1,044 stocks at the end of the fourth quarter, with investments primarily in the healthcare and technology sectors.

More than half of Tepper’s $3.89 billion equity portfolio of 44 stocks over the same period was invested in the communications services and consumer cyclical sectors.

disclose

I/We have no positions in any of the stocks mentioned and have no plans to initiate any positions within the next 72 hours.

The authors’ views are their own and not endorsed or guaranteed by GuruFocus.com.

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