The investigations that the Securities and Exchange Commission
has been performing on Guru investor
's hedge fund, SAC Capital, have been ongoing for several months
now, alleging (some confirming true) that some former and current
SAC portfolio managers have committed securities fraud through
sharing nonpublic information from company insiders to acquire
stocks. However, this has not stopped the hedge fund from
continuing on with its betting.
Yesterday, a 13G filing by SAC Capital Advisors revealed it had
purchased more shares of commercial real estate finance company,
Colony Financial Inc. (
) - a whole lot more. Adding more than 2.9 million shares to its
current stake, the transaction was an 866.71 percent increase,
GuruFocus Real Time Picks
Colony Financial is engaged in acquiring, originating, investing
in, financing and managing a portfolio of real estate-related
debt investments, primarily focusing on commercial mortgage
loans, real estate owned properties and mezzanine loans, to name
When SAC first acquired the stock in the third quarter of last
year, it only placed the hedge fund at 0.82 percent ownership;
SAC now sits with 5.2 percent stake in the company after the
Colony's presence in the market has experienced an attractive
turnaround in the past year. At the end of 2011, Colony's stock
price started to show light, rising all throughout 2012, on its
way to a one-year high. Before the year ended, even insiders
decided to get their money's worth from the stock's increasing
market value, making a concentrated sale of more than 91,000
shares combined between six of Colony's executive officers.
In unison with the increasing optimism in real estate recovery,
Colony's price continued to soar even after the concentrated
In the past 12 months, Colony has felt a revenue growth rate of
17.9 percent, and an EBITDA growth rate of 16.8 percent,
Last week, Colony Financial announced a public offering of 10
million shares of its common stock, and granting its underwriters
an option to purchase an additional 1.5 million. The company
intends to use at least $45 million of the net proceeds from the
offering to make additional investments in single-family homes
through its affiliation with CSFR Operating Partnership L.P.
SAC Capital is not the only one putting its money on Colony
Financial, and real estate investing in general.
Louis Moore Bacon
of Moore Capital Management also joined Cohen in buying the stock
new in the third quarter. In the same period, Jim Simons of
Renaissance Technologies added to his stake in Colony Financial,
after doing the same in the previous quarter and introducing the
stock to his portfolio in the first quarter.
Earlier this month, the Oracle of Omaha, Warren Buffett expanded
his real estate presence through Berkshire Hathaway real estate
branch, Berkadia Commercial Mortgage, by acquiring real estate
adviser, Hendricks & Partners.
Around the same time, CEO Jim Thomas of real estate company
Thomas Properties Group (
) was swayed by his company's rising price value and added onto
his now 3.1 million shares.
The real estate sector represents only 1.4 percent of SAC
Capitals' 1,490-stock portfolio.
Some of the fund's top holdings are Sirius XM Radio (
), American International Group (
), Tiffany & Co. (
) and Gilead Sciences (
View Steven Cohen's portfolio details here. Also view his
undervalued stocks, top growth companies and high yield stocks
Become a GuruFocus Premium Member!
GuruFocus' long list of Premium Membership perks provides many
opportunities to follow your favorite Gurus and stocks more
closely. If you are not a Premium Member yet, we invite you for a
7-Day Free Trial.About GuruFocus: GuruFocus.com tracks the stocks
picks and portfolio holdings of the world's best investors. This
value investing site offers stock screeners and valuation tools.
And publishes daily articles tracking the latest moves of the
world's best investors. GuruFocus also provides promising stock
ideas in 3 monthly newsletters sent to