Hedge fund guru Steven A. Cohen of SAC Capital rarely gives interviews. But he recently spoke as part of a conference sponsored by ISI, and, while the conference was closed to the media, The New York Times’ DealBook has a recap using reports from several people who were in the audience.
Cohen described the current market environment as ““grinding every day,” but said that “underneath stocks are exploding, and everything I’m seeing today looks bullish. … I’m not going to get negative just for the sake of being negative.” Cohen said there could be some dislocation when the Federal Reserve’s latest quantitative easing plan ends this summer. But he adds that this should be “a typically classic year” for the market.
“His favorite sectors are mobility apps and businesses that create faster networks or enable consumers on the Internet, citing Netflix and OpenTable as examples,” DealBook reports. He also cited two natural gas stocks and a coffee company as his top current picks.
Cohen said that about a quarter of his investments were made outside the United States, and says that global macro themes are more important than ever to consider. He also talked about how he manages risk, and what lessons he learned from the market crash of 2008. “Leverage, concentration and illiquidity are the three things that can kill you,” he said.