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Risk-Taking Guru Bets Heavily on Biotech, Metals Companies

Guru Steven Cohen is the chairman and CEO of Point72 Asset Management L.P. He founded SAC Capital Advisors in 1992 and converted his investment operations to the Point72 Asset Management family office in 2014. Cohen has said he took a liking to poker as a high school student, often betting his own money in tournaments. Cohen credits the game with teaching him how to take risks.

In the third quarter of 2015, he has continued to bet heavily and take risks by adding 7,092,747 shares in Cara Therapeutics Inc. ( CARA ), Globe Specialty Metals Inc. ( GSM ) and NorthStar Realty Europe Corp. ( NRE ).

On Dec. 4, Cohen added 1,381,358 shares of Cara Therapeutics, a 5569.99% increase, and now owns 1,406,158 total shares of the stock.

Cara Therapeutics is an emerging biotechnology company that was founded in July 2004. Cara Therapeutics focuses on developing novel therapeutics to treat human diseases associated with pain, inflammation and pruritus.

The company has a market cap of $404.94 million, an enterprise value of $293.82 million, a P/S ratio of 75.85 and a quick ratio of 34.29.

On Nov. 25 Cohen added 2,484,602 shares of NorthStar Realty Europe Corp., an increase of 364%, and now owns a total of 3,166,263 shares in the stock.

NorthStar is a New York-based externally managed diversified commercial real estate company that was founded in 2004. They generate revenues from various lending programs and they calculate interest rates based upon the risk involved with the lender. They lend for most property types, including commercial real estate.

NorthStar Realty Europe Corp. has a market cap of $665.34 million, a P/S ratio of 8.38, and a dividend yield of 5.60%.

On Nov. 30 Cohen also added 3,226,787 shares of Globe Specialty Metals Inc. and now holds 3,770,687 total shares of the stock.

Globe Specialty Metals is among the world's largest producers of silicon metal, silicon-based specialty alloys and silicon fume - critical ingredients in a host of industrial and consumer products with growing markets. They were incorporated in Delaware in December 2004 under the name International Metal Enterprises Inc. The company name was changed in November 2006 to Globe Specialty Metals Inc. The company's products are currently produced in eight principal operating facilities located in the U.S., Canada, Argentina and South Africa. Additionally, the company operates facilities in Poland and China.

Globe Specialty Metals has a market cap of $675.64 million, a P/E ratio of 27.24, an enterprise value of $751.39 million and a quick ratio of 1.79.

Below is a Peter Lynch Chart for Globe Specialty Metals.

Cohen has had tremendous success investing in common stocks. Amazingly, Cohen started trading with $7,000 that was supposed to be part of his tuition payment when he was attending the Wharton School. Today he has an estimated net worth of $12 billion according to Forbes.

Cheers to your investment success.

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This article first appeared on GuruFocus .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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