Cohen's Point72 was formed as a hedge fund in 2014 when SAC Capital Advisors converted its investment operations into a family office. In 2018, the firm reopened to external investors. The firm invests via a wide range of asset classes and strategies worldwide to generate superior risk-adjusted returns. Its long-short strategy is based on bottom-up research with a focus on fundamentals and macroeconomic conditions.
On July 20, Cohen purchased 883,847 shares to establish a new position in Poshmark (POSH, Financial). On the day of the purchase, the shares traded at an average price of $41.55. Overall, the purchase had a 0.17% impact on the equity portfolio and GuruFocus estimates Cohen has already gained 3.20% on the holding.
Poshmark operates an e-commerce platform that runs as a social marketplace. Users create their own listings to sell various items ranging from clothing to school supplies. The platform hosts 70 million registered users from the U.S., Canada and Australia that maintain over 200 million listings. The U.S. alone sees a sale occur every second on the platform.
On July 22, the stock was trading at $42.88 per share with a market cap of $3.23 billion. The company made its public debut in January of this year and has seen share prices fall sharply from its initial public offering price of $101.50 per share.
GuruFocus gives the company a financial strength rating of 5 out of 10 and a profitability rank of 2 out of 10. There is currently one severe warning sign issued for a Sloan ratio indicating poor quality of earnings. The company’s cash-to-debt ratio of 4.73 ranks well compared to industry competitors and the company reported a strong increase in revenue through the first quarter of 2021.
Cohen is the company's second-largest shareholder with 1.17% of shares outstanding. Other top shareholders include the Teacher Retirement System of Texas, Dragoneer Investment Group LLC, Grandeur Peak Global Advisors LLC and BlackRock Inc.
Cohen’s portfolio contains 927 stocks and 364 new holdings as of the end of the first quarter. It is valued at $21.41 billion and has seen a turnover of 42%. Top holdings include Uber Technologies Inc. (UBER, Financial), Western Digital Corp. (WDC, Financial), Baidu Inc. (BIDU, Financial), Visa Inc. (V, Financial) and Alphabet Inc. (GOOGL, Financial).
By weight, the top three sectors represented are technology (22.15%), health care (21.83%) and consumer cyclical (12.79%).