|DPZ October 2010-May 25 2011 (StockCharts.com)|
At the end of Q4 2010 (12/31/2010), SAC Capital disclosed that it owned 1,065,841 shares or 1.77% of DPZ (*at the end of Q3 2010 SAC owned 39,000 shares). A couple weeks later, according to a 13G filing on January 24, 2011 (after an event on January 12), SAC Capital Advisors LP disclosed a 5.3% stake or 3,190,753 shares in Domino's Pizza. At the end of Q1 2011 (3/31/2011) SAC owned 62,510 shares of DPZ, so it looks like SAC dumped DPZ shares two months too early! No? DPZ jumped from $18.5 to $24.5 in May.
I'm mainly showing how you can track hedge fund trades using 13D, 13G and 13F SEC filings. Of course I'm not sure if these trades were long only in nature or as a hedge against undisclosed short positions, or on credit default swaps (hidden over-the-counter credit derivatives that trade on public company debt). That is why I did this post last year: "Don't Be Misled By 13F Filings, They Don't Disclose Shorts, Credit Default Swap Exposure (CDS)".
SAC Capital is one of the largest actively managed hedge funds with $14 billion under management (or $16 billion in the 3/31/2011 filing; not sure if that's AUM) and is currently being investigated for insider trading. Two portfolio managers already plead guilty to insider trading charges earlier this year. It is interesting how this company runs. Steve Cohen, who runs the firm, gives various portfolio managers "hundred of millions of dollars to invest", while he runs a $3 billion book. At DealBook:
"Unlike many hedge funds that are controlled by one portfolio manager who makes all the investment decisions, SAC is decentralized; 142 small teams are each given control over hundred of millions of dollars to invest."