Wednesday, August 29, 2012

What We're Reading ~ 8/29/2012

Portfolio management: convex versus concave strategies [Distressed Debt Investing]

A checklist of advice for investors [Howard Lindzon]

SEC wants activist hedge funds to share with the rest of the class [Dealbreaker]

The short case on Activision (ATVI) [Stableboy Selections]

The long case on Dreamworks (DWA) [Whopper Investments]

A look at the trainwreck that is Gamestop (GME) [Value Plays]

A response to the above GameStop piece [Motiwala Capital]

Why are global macro hedge funds struggling? [Behavioral Macro]

The investment case for Oaktree Capital (OAK) [Brooklyn Investor]

On Netflix (NFLX) and Porter's five forces [Micro Fundy]

Now (CRM) plays cash flow games [Value Plays]

Facebook attractive valuation if you believe in core business [Can Turtles Fly]

What to think about when writing investor letters [AVC]

Tuesday, August 28, 2012

Lone Pine Capital Starts VeriSign Stake, Adds to BE Aerospace Position

Steve Mandel's hedge fund firm Lone Pine Capital just filed two 13G's with the SEC:

VeriSign (VRSN)

First, Lone Pine has started a brand new position in VeriSign (VRSN).  The hedge fund now owns 5.5% of the company with just over 8.6 million shares.  They did not own any VRSN at the close of the second quarter and the SEC filing was made due to portfolio activity on August 17th.

VeriSign (VRSN), a provider of internet infrastructure services, was purchased by numerous hedge funds in the second quarter and the company is analyzed in the brand new issue of our premium newsletter that was just released.  So definitely check it out to see the bull and bear case on the name.

BE Aerospace (BEAV)

Second, Mandel's firm has boosted its stake in BE Aerospace (BEAV).  Per the 13G filing, Lone Pine now owns 5.7% of the company with 5,955,262 shares.  This marks an increase of 31% in their position size since the end of June.

Back in July, the company reaffirmed EPS guidance for FY 2012 and raised revenue guidance for FY 2012.  Lone Pine filed the disclosure due to portfolio activity on August 17th.

Per Google Finance, BE Aerospace is "a manufacturer of cabin interior products for commercial aircraft and business jets and distributor of aerospace fasteners and consumables. The Company sells its products directly to the airlines and aerospace manufacturers. It also designs, engineers and manufactures customized fully integrated thermal and power management solutions for participants in the defense industry, aerospace original equipment manufacturers (OEMs) and the airlines."

To see the rest of Lone Pine's US stock portfolio, their portfolio changes are broken down in our Hedge Fund Wisdom newsletter.

Viking Global Starts Medivation Stake (MDVN)

Andreas Halvorsen's hedge fund firm Viking Global recently filed a 13G with the SEC on shares of Medivation (MDVN).  Per the filing, Viking has revealed a 5.3% ownership stake in MDVN with just over 1.9 million shares.

This is a brand new position for the hedge fund and the SEC filing was required due to portfolio activity on August 8th.

Per Google Finance, Medivation is "a biopharmaceutical company focused on the rapid development of small molecule drugs to treat serious diseases for which there are limited treatment options. Together with its collaboration partner Astellas Pharma Inc. (Astellas), the Company is developing MDV3100 for multiple stages of advanced prostate cancer."

You can view the rest of Viking Global's US stock portfolio in the brand new issue of our Hedge Fund Wisdom newsletter.

Soros Fund Discloses Stake in Manchester United (MANU)

George Soros' hedge-fund-turned-family-office Soros Fund Management has disclosed a stake in newly public Manchester United (MANU).  Per a 13G filed with the SEC, Soros Fund has disclosed a 7.85% ownership stake in MANU with just over 3.1 million shares.

This is obviously a brand new position as the English Premier League football club completed its initial public offering (IPO).  The proceeds were largely used to pay down debt the club was saddled with.

The IPO priced at $14, well below its anticipated range of $16-18.  Since debuting, shares traded down below $13, but have bounced back up to around $13.77.  Many investors seem skeptical given that the name is hard to borrow at numerous brokers. 

Per Google Finance, Manchester United is "engaged in the operations of professional sports team. It provides manchester united a platform to generate revenue from multiple sources, including sponsorship, merchandising, product licensing, new media & mobile, broadcasting and matchday. The Company had three principal sectors: Commercial, Broadcasting and Matchday."

Jeffrey Altman's Owl Creek Raises Visteon Stake (VC)

Jeffrey Altman's hedge fund firm Owl Creek Asset Management recently filed a 13G with the SEC regarding shares of Visteon (VC).  Per the filing, Owl Creek has disclosed a 5.57% ownership stake in VC with 2,933,100 shares.

This marks a 27% increase in their position size since the end of the second quarter.  Visteon emerged from bankruptcy two years ago and they recently sold their automotive lighting business.

Numerous other hedge funds and private equity firms continue to hold stakes including the likes of JANA Partners, Centerbridge Partners, SAC Capital, Monarch Alternative Capital, Ascend Capital, and Tremblant Capital, among many others.

Per Google Finance, Visteon is "a global supplier of climate, electronics, interiors and lighting systems, modules and components to global automotive original equipment manufacturers (OEMs). The Company operates in five segments: Climate, Electronics, Interiors, Lighting and Services."