SAC Capital Made $100 Million On The Dendreon Trade Yesterday

Steve Cohen Breakdancing

Photo: Business Insider

Yesterday one desk at SAC Cap made $100 million.Hours after the FDA approved a new prostate cancer drug, Provenge, yesterday, shares of Dendreon spiked. The news was fantastic for SAC Cap, which reported a 5.5% stake in the pharmaceutical company on April 2.

The SEC 13G filing means that the firm owned 7,369,801 in the Dendreon Corp as of 10 days before April 2.

So let’s just say SAC bought DNDN at the highest possible price before yesterday’s spike, $40. That’s a little under a $300 million investment. When the stock jumped $10 yesterday, those shares were worth $368.5 million. And SAC made at least $68 million in one day. Awesome.


Now just for fun, let’s calculate the max they could have made. No one is required to report a company stake until it tips 5%. So let’s say SAC bought 4.9% of Dendreon in January, when it was trading below $30 ($190.4 million). Then let’s say he bought the remaining 1.6% at ~$35 in late March ($75 million). He would have made $177.6 million.

So yeah, a $100 million profit is a conservative estimate.

Makes those 62% who said they wouldn’t invest in SAC look silly.

Also check out: What it’s like to work for Steve Cohen and What’s on the desk at SAC Capital.

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