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Steven Cohen Trims Nike, Coach, Alphabet

Guru's largest 1st-quarter reductions

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May 20, 2016
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Steven Cohen (Trades, Portfolio), a billionaire hedge fund investor, is the founder of SAC Capital Advisors, a Stamford, Connecticut-based hedge fund that he continues to manage. During the first quarter he reduced his holdings in the following stocks:

The investor almost closed his stake in Nike Inc. (NKE), reducing his shares by 94.17% with an impact of -1.28% on the portfolio.

The company designs, develops and markets footwear, apparel, equipment and accessory products. It is a seller of athletic footwear and athletic apparel. It sells its products through NIKE-owned in-line and factory retail stores and Internet websites. First-quarter revenue grew 8% and diluted earnings per share increased 22% from the same quarter of a year before.

GuruFocus gives the stock a profitability and growth rating of 8 out of 10 with ROE of 29.67% and ROA of 17.75% that are outperforming 91% of the companies in the Global Footwear & Accessories industry. Financial strength has a rating of 9 out of 10 with cash to debt of 2.49 that is a few above the industry median of 1.47.

Spiros Segalas (Trades, Portfolio) is the company's largest shareholder among the gurus with 0.73% of outstanding shares followed by Frank Sands (Trades, Portfolio) with 0.71%, Jeremy Grantham (Trades, Portfolio) with 0.19%, Pioneer Investments (Trades, Portfolio) with 0.14%, Tom Gayner (Trades, Portfolio) with 0.02%, John Hussman (Trades, Portfolio) with 0.01%, RS Investment Management (Trades, Portfolio) with 0.01% and Chris Davis (Trades, Portfolio) with 0.01%.

The guru reduced his shares in Advance Auto Parts Inc. (AAP) by 26.32% with an impact of -1.13% on the portfolio.

The company is a specialty retailer of automotive aftermarket parts, accessories, batteries and maintenance items mainly operating within the U.S.

Total sales for the first quarter decreased 1.9% from the first quarter of 2015, driven by the comparable store sales decrease of 1.9% primarily due to availability and service shortfalls. Its gross profit rate was 45.3% of sales during the first quarter as compared to 45.9% during the first quarter last year.

GuruFocus gives the stock a profitability and growth rating of 8 out of 10 with ROE of 20.87% and ROA of 5.83% that are outperforming 68% of the companies in the Global Specialty Retail industry. Financial strength has a rating of 8 out of 10 with cash to debt of 0.08 that is below the industry median of 0.98.

The largest shareholder among the gurus is Davis with 0.98% of outstanding shares followed by

Sarah Ketterer (Trades, Portfolio) with 0.75%, First Eagle Investment (Trades, Portfolio) with 0.73%, Pioneer Investments (Trades, Portfolio) with 0.55%, Larry Robbins (Trades, Portfolio) with 0.03%, Manning & Napier Advisors Inc. with 0.26% and John Burbank (Trades, Portfolio) with 0.25%.

The investor reduced his shares in Signet Jewelers Ltd. (SIG) by 68.68% with an impact of -0.93% on the portfolio.

The company is a specialty jewelry retailer. It is engaged in the retailing of jewelry, watches and associated services in the United Kingdom and the U.S.

Fiscal 2016 same-store sales increased 4.1%; diluted earnings per share (EPS) grew nearly 24%; adjusted EPS grew nearly 22%. During the fourth quarter same-store sales increased 4.9%; EPS grew more than 20%; adjusted EPS grew more than 18%.

GuruFocus gives the stock a profitability and growth rating of 7 out of 10 with ROE of 6.57% and ROA of 2.67% that are outperforming 74% of the companies in the Global Luxury Goods industry. Financial strength has a rating of 9 out of 10 with cash to debt of 0.10 that is below the industry median of 0.98.

Alan Fournier (Trades, Portfolio) is the company's largest shareholder among the gurus with 2.38% of outstanding shares followed by Daniel Loeb (Trades, Portfolio) with 1.28%, Ken Heebner (Trades, Portfolio) with 0.68%, Cohen with 0.53%, Jim Simons (Trades, Portfolio) with 0.37%, Pioneer Investments (Trades, Portfolio) with 0.24%, Louis Moore Bacon (Trades, Portfolio) with 0.16% and Caxton Associates (Trades, Portfolio) with 0.11%.

The guru reduced his shares in Coach Inc. (COH) by 12% with an impact of -0.12% on the portfolio.

The company markets and sells modern luxury accessories and lifestyle collections. Its product offerings include women's and men's bags, accessories, business cases, footwear, wearables, jewelry, sunwear, travel bags, watches and fragrances.

During the last quarter net sales increased 13% from the third quarter of 2015 and non-GAAP earnings per share increased 23%.

GuruFocus gives the stock a profitability and growth rating of 7 out of 10 with ROE of 15.39% and ROA of 8.49% that are outperforming 76% of the companies in the Global Luxury Goods industry. Financial strength has a rating of 6 out of 10 with cash to debt of 1.45 that is above the industry median of 0.98.

The largest shareholder among the gurus is Dodge & Cox with 6.23% of outstanding shares followed by Grantham with 0.16%,

Meridian Funds (Trades, Portfolio) with 0.13%, John Rogers (Trades, Portfolio) with 0.07%, John Buckingham (Trades, Portfolio) with 0.06%, RS Investment Management (Trades, Portfolio) with 0.05% and Leon Cooperman (Trades, Portfolio) with 0.04%.

The investor reduced shares in Alphabet Inc. (GOOG) by 31.95% with an impact of -0.78% on the portfolio.

The company through its subsidiary Google Inc. is engaged in improving the ways people connect with information and products including Search, Android, YouTube, Apps, Maps and Ads.

First-quarter results represented a tremendous start to the year with 17% revenue growth year on year and 23% growth on a constant-currency basis.

GuruFocus gives the stock a profitability and growth rating of 9 out of 10 with ROE of 14.23% and ROA of 11.94% that are outperforming 67% of the companies in the Global Internet Content & Information industry. Financial strength has a rating of 9 out of 10 with a cash to debt of 14.45 that is a few above the industry median of 13.20.

Dodge & Cox is the company's largest shareholder among the gurus with 0.47% of outstanding shares followed by 

PRIMECAP Management (Trades, Portfolio) with 0.38%, Segalas with 0.31%, Andreas Halvorsen (Trades, Portfolio) with 0.3%, Sands with 0.21%, Ken Fisher (Trades, Portfolio) with 0.14%, Davis with 0.13%, Pioneer Investments (Trades, Portfolio) with 0.11% and Loeb with 0.1%.

The guru almost closed his stake in McDonald's Corp. (MCD) in which he reduced shares by 93.80% with an impact of -0.72% on the portfolio.

The company franchises and operates McDonald's restaurants in the food service industry. Its geographic segments include the U.S., Europe and Asia-Pacific, Middle East and Africa.

Global comparable sales increased 6.2%, which benefited from one additional day due to leap year, and consolidated revenues decreased 1% from the first quarter of 2015. The company reported a 28% increase for first quarter consolidated operating income.

GuruFocus gives the stock a profitability and growth rating of 8 out of 10 with ROE of 58.42% and ROA of 14.02% that are outperforming 90% of the companies in the Global Restaurants industry. Financial strength has a rating of 8 out of 10 with cash to debt of 0.14 that is below the industry median of 0.61.

The company's largest shareholder among the gurus is Segalas with 0.3% of outstanding shares followed by Grantham with 0.14%, Simons with 0.07%,

Stanley Druckenmiller (Trades, Portfolio) with 0.02%, PRIMECAP Management (Trades, Portfolio) with 0.02%, Manning & Napier Advisors Inc. with 0.02% and Ray Dalio (Trades, Portfolio) with 0.01%.

The investor reduced shares in Ralph Lauren Corp. (RL) by 89.90% with an impact of -0.69% on the portfolio.

The company designs, markets and distributes men's, women's and children's apparel, accessories, fragrances and home furnishings. Its segments include Wholesale, Retail and Licensing.

Net revenues for the fourth quarter of fiscal 2016 were flat with the prior-year period on a constant-currency basis and declined 1% on a reported basis; wholesale segment sales decreased 5% on a constant-currency basis and 6% on a reported basis, primarily due to a decline in sales in North America.

GuruFocus gives the stock a profitability and growth rating of 8 out of 10 with ROE of 10.39% and ROA of 6.35% that are outperforming 61% of the companies in the Global Apparel Manufacturing industry. Financial strength has a rating of 6 out of 10 with cash to debt of 1.52 that is a few above the industry median of 1.47.

Third Avenue Management (Trades, Portfolio) is the company's largest shareholder among the gurus with 0.27% of outstanding shares followed by Dalio with 0.24%, Joel Greenblatt (Trades, Portfolio) with 0.18%, Martin Whitman (Trades, Portfolio) with 0.14%, Cohen with 0.1%, Robert Olstein (Trades, Portfolio) with 0.07%, Chuck Royce (Trades, Portfolio) with 0.06% and Ron Baron (Trades, Portfolio) with 0.05%.

The guru reduced his shares in Medivation Inc. (MDVN) by 85.46% with an impact of -0.66% on the portfolio.

The company is a biopharmaceutical company engaged in the development of novel small molecule drugs to treat diseases like Alzheimer's disease and Huntington's disease.

GuruFocus gives the stock a profitability and growth rating of 6 out of 10 with ROE of 37.22% and ROA of 22.43% that are outperforming 96% of the companies in the Global Biotechnology industry. Financial strength has a rating of 8 out of 10 with cash to debt of 18.25 that is below the industry median of 56.57.

The largest shareholder among the gurus is

Columbia Wanger (Trades, Portfolio) with 1.08% of outstanding shares followed by Halvorsen with 0.43%, Paul Tudor Jones (Trades, Portfolio) with 0.4%, Pioneer Investments (Trades, Portfolio) with 0.24%, Greenblatt with 0.2% and Simons with 0.13%.

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