Tuesday, May 23, 2017

Tiger Global Increases TransDigm Group Position

Chase Coleman's hedge fund firm Tiger Global has filed a 13G with the SEC regarding its position in TransDigm Group (TDG).  Per the filing, Tiger Global now owns 7.7% of TDG with 4 million shares.

This is a noticeable increase from the 2.45 million shares the hedge fund owned at the end of the first quarter.  The filing was made due to activity on May 18th.

While this second quarter activity is notable, it's also worth pointing out that Tiger Global boosted its TDG position back in the first quarter by 492% as they previously owned a small position.  Simply put, they've been acquiring a lot of TDG shares over the past five months. 

TDG shares were hit in Q1 by a short seller report questioning the company's pricing practices.  As detailed in the brand new issue of our Hedge Fund Wisdom newsletter, numerous hedge funds bought TDG shares in Q1.

Per Google Finance, TransDigm Group is "a designer, producer and supplier of engineered aircraft components for use on commercial and military aircraft in service. The Company operates through three segments: Power & Control, Airframe and Non-aviation. The Power & Control segment includes operations that primarily develop, produce and market systems and components that provide power to or control power of the aircraft utilizing electronic, fluid, power and mechanical motion control technologies. The Airframe segment includes operations that primarily develop and market systems and components that are used in non-power airframe applications utilizing airframe and cabin structure technologies. The Non-aviation segment includes operations that primarily develop, produce and market products for non-aviation markets. Its product offerings include mechanical/electro-mechanical actuators and controls, engineered latching and locking devices, and seat belts and safety restraints."

To view the rest of Tiger Global's portfolio, check out the just released issue of our premium newsletter.


Berkshire Hathaway Adds To Liberty SiriusXM Again

Warren Buffett's Berkshire Hathaway has filed two separate Form 4's with the SEC regarding its position in two share classes of Liberty SiriusXM (LSXMA / LSXMK). 

Per the filing, Berkshire was buying shares of both on May 18th, 19th, and 22nd.  They acquired 492,156 shares of LSXMA at weighted average prices ranging from $37.1826 to $38.8041.  After these buys, they owned over 14.15 million LSXMA shares.

They also bought 679,930 shares of LSXMK at weighted average prices ranging from $36.8074 to $38.5003.  After these purchases, they now own over 29.77 million LSXMK shares.

This is the second month in a row that Berkshire has bought LSXMA / LSXMK shares.  We highlighted then how Ted Weschler (one of Berkshire's portfolio managers) seems to be the lead investor here.

For more from Berkshire, be sure to check out a recent interview with Warren Buffett and Charlie Munger.

Per Google Finance, Liberty SiriusXM is "Liberty Media Corporation owns interests in subsidiaries and other companies, which are engaged in the media and entertainment industries. The Company's principal businesses and assets include its consolidated subsidiaries Sirius XM Holdings Inc. (SIRIUS XM) and Braves Holdings, LLC (Braves Holdings), and its equity affiliate Live Nation Entertainment, Inc. (Live Nation). The Company's segments are SIRIUS XM, and Corporate and other. SIRIUS XM provides a subscription-based satellite radio service. Through its subsidiaries and affiliates, the Company principally operates in North America. The Company also owns a portfolio of minority equity investments in publicly traded media companies, including Time Warner, Inc. and Viacom, Inc. SIRIUS XM transmits music, sports, entertainment, comedy, talk, news, traffic and weather channels, as well as infotainment services, in the United States on a subscription fee basis through two satellite radio systems." 


ValueAct Capital Sells Some Willis Towers Watson

Jeff Ubben's activist firm ValueAct Capital has filed a Form 4 with the SEC regarding its position in Willis Towers Watson (WLTW).  Per the filing, ValueAct sold WLTW shares on May 17th through 19th at prices between $140.11 and $141.05.  In total, they sold 1 million shares.

After these transactions, ValueAct still owns 7.1 million shares of WLTW.  Ubben's firm has trimmed a few positions in the past few months as he feels the market has been overvalued and has been having a hard time finding new opportunities.  That said, ValueAct did reportedly take a stake in KKR.

Per Google Finance, Willis Towers Watson is "a holding company. The Company operates as a global advisory, broking and solutions company. It is engaged in offering risk management, insurance broking, consulting, technology and solutions, and private exchanges. The Company operates through eight segments: Willis International; Willis North America; Willis Capital, Wholesale & Reinsurance (CWR); Willis GB; Towers Watson Benefits; Towers Watson Exchange Solutions; Towers Watson Risk and Financial Services; and Towers Watson Talent and Rewards. The Willis GB segment comprises four business units: Property and Casualty, Transport, Financial Lines and Retail Networks. The Willis Capital Wholesale and Reinsurance segment includes Willis Re; Willis Capital Markets & Advisory; Willis' wholesale business, and Willis Portfolio Underwriting Services. The Willis North America segment provides risk management, insurance brokerage and related risk services."

You can view the rest of ValueAct's portfolio in the new issue of our Hedge Fund Wisdom newsletter.