Lone Pine Capital Raises Realogy Holdings (RLGY) Position ~ market folly

Tuesday, May 28, 2013

Lone Pine Capital Raises Realogy Holdings (RLGY) Position

Steve Mandel's hedge fund firm Lone Pine Capital filed a 13G with the SEC regarding shares of Realogy Holdings (RLGY).  Per the filing, Lone Pine has revealed a 5.1% ownership stake in Realogy with 7,457,505 shares.

This marks a 207% increase in Lone Pine's position size since the end of the first quarter.  The 13G filing was required due to portfolio activity on May 14th. 

Other Hedge Funds Involved in Realogy

Our premium newsletter last week highlighted how Blue Ridge Capital and Paulson & Co are also involved in this stock.

Hedgies seem to like Realogy as a play on the recovering US housing market and find the company's high margin (and low capital intensity) business model attractive as RLGY benefits from increased sale volumes and rising prices.

Per Google Finance, Realogy Holdings "through its subsidiaries, provides real estate and relocation services. The Company operates in four segments: Real Estate Franchise Services, Company Owned Real Estate Brokerage Services, Relocation Services and Title and Settlement Services. Through its Real Estate Franchise Services segment (RFG), is a franchisor of some of the most recognized brands in the real estate industry. Through its subsidiary, NRT LLC (NRT), it owns and operates a full-service real estate brokerage business in more than 35 of the metropolitan areas of the United States. Through its subsidiary, Cartus Corporation (Cartus), it is a provider of outsourced employee relocation services and the provider in the United States."

This hedge fund has been active lately as we detailed some of Lone Pine's other portfolio activity.

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