First of all, Cohen thinks that the commodities sell off last week created a good entry point to buy energy stocks that have exposure to natural gas and coal.
In a previous interview in February 2011, Steve Cohen revealed that his two top stock picks were Williams Companies (NYSE:WMB) and Plains Exploration (NYSE:PXP).
In his latest SEC filing, Cohen's largest energy holding was Plains Exploration (NYSE:PXP). With 9.03 million shares it comprised 2.35% of his portfolio. Cohen has previously disclosed that his fund owns Murphy Oil Corp. (MUR) that has a weighting of 0.52% in his portfolio. It will be interesting to see if Cohen has added to these two positions on the recent commodity pullback.
Currently he thinks that the market is experiencing a growth scare because QE2 is scheduled to end on June 30.
Cohen is not particularly concerned about the markets for the rest of 2011 because he sees growth at 4%. However, Cohen becomes cautious for 2012 because government aid programs will come to a stop.
The legendary hedge fund manager is also more focused on macro themes rather than stock picking. Cohen is now making big bets on currencies, interest rates and commodities.