Steve Cohen’s Point72 Asset Management has increased its exposure to Jones Energy Inc (NYSE:JONE) by 12.8% and now holds 724,600 Class A Common Shares. The fund’s stake is passive and with the newly acquired shares represents 5.7% of the company’s outstanding stock. Yet this was not the only transaction made by the investment firm at the beginning of 2015. Point72 Asset Management also increased its stake in Silicon Motion Technology Corp (ADR) (NASDAQ:SIMO) by 251,700 American Depositary Shares, each representing four ordinary shares. Following its latest 13G filing, Steve Cohen’s firm now holds more than 1.8 million shares, which amount to 5.5% of the company’s outstanding stock. In addition, the fund drastically increased its exposure to RCS Capital Corp (NYSE:RCAP), purchasing around 3.85 million shares of Class A Common Stock and thus bringing its holding to more than 4.4 million shares.
Steven Cohen founded Point72 Asset Management as a privately owned family office after its S.A.C. Capital Advisors fund was shut down. This group of hedge funds favors a long/short equity method and makes considerable quantitative and macro investments. The Connecticut-based firm boasts a diversified equity portfolio valued at around $13.28 billion, after losing around $2.3 billion in market value over the past two years. Point72 Asset Management slightly favors energy and consumer discretionary stocks, with Tyson Foods, Inc. (NYSE:TSN), Canadian Natural Resource Ltd (USA) (NYSE:CNQ), and Baker Hughes Incorporated (NYSE:BHI) constituting its top picks.
In addition to producing, Jones Energy Inc (NYSE:JONE)’s activities consist of acquiring, exploring, and developing oil and natural gas properties in the United States. Up until the end of 2013, the company boasted estimated proved reserves amounting to the equivalent of 89 million barrels of oil. This stock has probably been on Steve Cohen’s radar for quite some time now, especially since Jones Energy reported an increase in sales, production, and net income for the third quarter. Considering share prices are low at the moment, it is not surprising that Point72 Asset Management decided to increase its stake in the company. Just a few weeks ago, the fund had entered a new position in Jones Energy, which you can read more about here.
Silicon Motion Technology Corp (ADR) (NASDAQ:SIMO) on the other hand is trading quite near its 52 week high, yet the investor might have been excited about the addition of Mr. Gihyun Bae as Senior Vice President for Product Planning and Strategic Business Development. This latest incorporation could have a positive effect on the company, which designs, developes, and markets semiconductor solutions for the mobile industry. The Taiwan-based firm is expected to perform well throughout 2015, as demand for its mobile storage products continues to increase. The stock’s optimistic outlook was confirmed, when Silicon Motion Technology reported a 78% increase in profit last quarter, with sales growing by 52%.
Point72 Asset Management’s large increase in its exposure to RCS Capital Corp (NYSE:RCAP) is quite harder to explain, especially since a lawsuit was recently filed against the company and its Board of Directors. Nevertheless, Steve Cohen must have his reasons to make such a bold investment in the firm, which acts primarily as a wholesale broker-dealer, and investment banker. In addition to its operations in the capital markets business, the company offers strategic advisory services. Despite the uncertainties surrounding this stock’s future, Citigroup Inc recently upgraded it from a “neutral” rating to a “buy” rating, suggesting RCS Capital might surprise shareholders positively in the near future.
Apart from Steve Cohen’s fund, other institutional shareholders hold significant positions in the stocks mentioned. Ken Griffin’s Citadel Investment Group has a stake in Jones Energy Inc (NYSE:JONE) amounting to almost 348,400 shares, despite reducing its holdings by 4% last quarter. Silicon Motion Technology Corp (ADR) (NASDAQ:SIMO) has the backing of Alex Sacerdote’s Whale Rock Capital Management, with a position of 745,100 shares, amounting to 2.6% of the firm’s equity portfolio. Finally, Brian Jackelow’s Sab Capital Management disclosed a stake of more than 3 million shares of RCS Capital Corp (NYSE:RCAP) stock last quarter, making it one of the company’s largest institutional shareholders.
Disclosure: Pablo Erbar holds no position in any stocks or funds mentioned.
