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Monica Wolfe
Monica Wolfe
Articles (757) 

Steven Cohen and Steve Mandel’s Real Time Buys

January 14, 2014 | About:

SAs reported by GuruFocus Real Time Picks yesterday there were two gurus adding to some of their larger positions. Steve Mandel (Trades, Portfolio) added to his holdings in Wyndham Worldwide (WYN) and Steven Cohen (Trades, Portfolio) upped his stake in PDC Energy (PDCE).

Steve Mandel (Trades, Portfolio)

Steve Mandel (Trades, Portfolio) made an increase to his holdings in the hotel holding company Wyndham Worldwide.  The guru upped his stake 18.68% by purchasing 1,066,056 shares of the company’s stock.  He bought these shares at an average price of $72.97 per share for a transaction amount of roughly $77.8 million.

As of his most recent buy, Steve Mandel (Trades, Portfolio) now holds on to 6,772,247 shares of Wyndham stock, giving him control of 5.09% of the company’s shares outstanding.

Steve Mandel (Trades, Portfolio)’s holding history as of the third quarter:


Steve Mandel (Trades, Portfolio)’s fund Lone Pine manages approximately $21 billion amongst its various funds, which were up between 10% and 16% as of the first half of 2013.  Prior to creating Lone Pine, Mandel worked as a senior managing director and consumer analyst for Julian Robertson (Trades, Portfolio)’s Tiger Management.

As of the close of the third quarter Steve Mandel (Trades, Portfolio)’s portfolio held 57 stocks valued at approximately $22.395 billion.

Wyndham Worldwide operates as a hospitality company and offers individual consumers and business customers a suite of hospitality products and services across various accommodation alternatives and price ranges through its portfolio of world-renowned brands. 

Wyndham’s historical revenue and net income:


The analysis on Wyndham reports that the company’s price is near a 10-year high, its P/S ratio is also close to a 10-year high and that the company has issued $463 million of debt over the past three years, but its debt level is acceptable.

Most recently the company was given the Silver Award for Best Supporting Services in the property developer services category at the Overseas Property Professional’s (OPP) Awards for Excellence. 

The Peter Lynch Chart suggests that the company is currently overvalued:


Wyndham Worldwide has a market cap of $9.31 billion.  Its shares are currently trading at around $71.48 with a P/E ratio of 22.70, a P/S ratio of 1.98 and a P/B ratio of 5.60.  The company’s dividend yield is currently sitting at 1.62%.

Steven Cohen (Trades, Portfolio)

Over the past week GuruFocus real time picks also noted that Steven Cohen (Trades, Portfolio) of the infamous SAC Capital made a massive increase to his holdings in PDC Energy.  The guru upped his stake in the company 8302.36% by purchasing a total of 1,785,672 shares. He bought these shares at an average price of $48.11 per share.  Since his purchase the price per share is down approximately -3% to $46.67 per share.

Cohen now holds on to 1,807,180 shares of PDC Energy, giving him control of 5.93% of the company’s shares outstanding.

Cohen’s holding history of PDC Energy as of the third quarter:


Steven Cohen reported to his outside investors at the end of the year that the fund had mustered up a 20.10% gain this year, making it one of the hedge fund industry’s best returns to date.  Although this number is not final because it does not include the last two days of 2013, but even without the final two days these returns place SAC Capital among the hedge fund industry’s top performer’s of 2013.

Cohen is busy preparing to stop managing money for wealthy outside investors after his fund plead guilty to insider trading last month.  One of the conditions Cohen received as a punishment was that he was required to quit managing money for outside investors along with paying a $1.2 billion penalty. 

PDC Energy acquires, develops, explores and produces natural gas, NGLs and crude oil with operations in the Western and Eastern regions of the United States.

PDC Energy’s historical revenue and earnings growth:


The analysis on PDC Energy reports that the company has been in an operating loss over the past three years, its revenue has been in decline over the past five years and over the past three years the company has issued $341.891 million of debt.

As of the close of the third quarter there were seven gurus that held a position in PDC Energy.  Cohen is the largest shareholder with 1,807,180 shares of the company’s stock, representing 5.93% of the PDCE’s shares outstanding.  Columbia Wanger (Trades, Portfolio) owns 730,000 shares of PDC Energy, representing 2.4% of the company’s shares outstanding, and George Soros (Trades, Portfolio) maintains 333,046 shares of the company’s shares or 1.09% of their shares outstanding.

Most recently PDC Energy announced a 2014 capital budget of $647 million and a 2014 production guidance of 9.5 million BOE to 10 million BOE, or approximately 34% year-over-year growth.  They also announced that the solid production results come from the Wattenberg Downspacing Test and the ongoing Utica development.

PDC Energy has a market cap of $1.66 billion.  Its shares are currently trading at around $46.67 with a P/S ratio of 3.60 and a P/B ratio 1.80.

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Rating: 4.0/5 (1 vote)


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