SAC Boosts Stakes in Yahoo, Air Products in Third Quarter

SAC Capital Advisors LP, billionaire Steven A. Cohen’s hedge-fund firm that pleaded guilty last week to securities fraud, boosted its holdings in Yahoo! Inc. (YHOO) and Air Products & Chemicals Inc. (APD) in the third quarter.

SAC bought 6.7 million shares of Sunnyvale, California-based Yahoo and owned 7.6 million shares valued at $251 million as of Sept. 30, making it his largest equity investment, according to a filing today with the U.S. Securities and Exchange Commission. The firm purchased 1.5 million shares of Air Products, based in Allentown, Pennsylvania, holding a stake worth $154.7 million.

Cohen’s firm, based in Stamford, Connecticut, this month agreed to pay $1.8 billion to settle insider-trading charges after the U.S. government accused it of engaging in an unprecedented scheme lasting more than a decade. The market value of SAC’s U.S.-listed equity holdings declined by about $2 billion in the second quarter as clients pulled their money amid the government’s probe of the firm.

In the third quarter, the firm’s stock holdings fell by $123 million, according to data compiled by Bloomberg.

SAC added to its stakes in Intuitive Surgical Inc. (ISRG), a maker of robotic-surgery devices; energy company Tesoro Corp. (TSO); and retailer Kohl’s Corp. (KSS) The firm reduced positions in drilling lease owner Continental Resources Inc., Amazon.com Inc. and Facebook Inc. (FB)

SAC’s main fund returned about 16 percent this year through October, a person with knowledge of the returns said last week. Jonathan Gasthalter, a spokesman for SAC at Sard Verbinnen & Co., declined to comment on the filing.

To contact the reporter on this story: Saijel Kishan in New York at skishan@bloomberg.net

To contact the editor responsible for this story: Christian Baumgaertel at cbaumgaertel@bloomberg.net

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