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SAC Capital Advisors, under continued investigation by federal regulators for insider trading and having agreed to pay more than $600 million to settle existing charges without admitting any guilt, apparently has taken an interest in Supervalu.

According to a MarketWatch story, SAC, the giant hedge fund owns and managed by multi-billionaire Steven A. Cohen, "owns nearly 11 million shares of Supervalu," a position that has largely been built during 2013."

According to the story, SAC wasn't the only hedge fund interested in Supervalu: "Coatue Management more than doubled the size of its own position to over 10 million shares, giving it a position worth $25 million. Saba Capital initiated a position of 8.2 million shares between October and December, making the grocer one of the five largest single-stock equity positions in its portfolio. Blue Mountain Capital, Brigade Capital, and Jeffrey Altman's Owl Creek Asset Management are also among SVU investors." However, the story also notes that "the most recent data shows that 35% of the shares outstanding are held short, so a number of market players are bearish on the stock."
KC's View:
Let's put these numbers in context.

Yesterday, Supervalu's stock closed at $4.69, almost double what it was back in January, making SAC's holdings worth a little bit more than $51.5 million.

After Cohen got the news that he was going to settle a case against him by writing a check for $614 million (assuming a judge allows the settlement to go through; he has expressed some skepticism about the decision not to force SAC to admit guilt), he apparently celebrated by buying an East Hampton ocean-front mansion for$60 million, and a Picasso painting, “Le Rêve,” for $155 million.

Yikes.