Friday, July 6, 2012

What We're Reading ~ Investor Profile Edition

A look at John Paulson's very bad year [BusinessWeek]

The latest look at Omega's Lee Cooperman [Bloomberg]

Why David Herro is betting big on Europe [Fortune]

John Thaler's JAT Capital has a rough year [Dealbook]

If you missed it 2 years ago: in-depth interview with Steve Cohen [Vanity Fair]

Tuesday, July 3, 2012

Third Point Starts Chesapeake Energy & News Corp Stakes: June Exposure Report

Dan Loeb's Third Point Offshore Fund finished June up 0.2% and is up 3.9% for the year.  The big takeaway from their June exposure report is a large new holding in Chesapeake Energy (CHK).

Third Point's Top Positions

1. Yahoo!
2. Gold
3. Delphi
4. Chesapeake Energy
5. Apple

This is the first time Chesapeake has appeared under their top holdings' column.  They did not disclose a position back in the first quarter.  Mason Hawkins' Southeastern Asset Management has a 13.9% activist stake in the company as well.

Noted activist investor Carl Icahn has also taken over a 7% ownership stake in CHK and sees it as an undervalued company.  Icahn argues that they can turnaround the story "if you clean this company up ... and natural gas prices go higher, which I think they will."

We've also posted up Third Point's Q1 letter which details their thesis on Apple and other positions.

Top winners from the quarter include Yahoo, Gold, as well as News Corp, Portugal Obrigacoes do Tesouro and Progress Energy (multiple securities held), the last three of which are newly disclosed positions as well.

News Corp recently announced that it would be splitting into two: an entertainment business (FOX properties) and a newspaper/publishing business (Wall Street Journal, book publishing etc).  This is obviously an event-driven trade for the hedge fund with a catalyst that shareholders and management hope unlocks value.

Third Point's top losers from the second quarter included Delphi, Sara Lee (which completed its spin-off), two healthcare shorts and an ABS short.

Third Point's Latest Exposure Levels

In equities, they are now net long 27.3% (50.2% long, -22.9% short).  This is a slight decrease in net exposure from last month.  Their largest sector exposure comes in technology, media & telecom (largely due to their YHOO stake) at 16.9% net long.  Geographically, they are net long the Americas 65%, net short EMEA -11% and net short Asia -4%.

In credit, Loeb's fund is net long to the tune of 29.8% (long 38.5%, short -8.7%).  This is a decisive increase from the month prior where they were only net long by 14.2%.

Dan Loeb is featured in the new book The Alpha Masters and you can check out our review here.

What We're Reading ~ 7/3/12

3 mega caps with big value to be unlocked [Economic Musings]

The case for shorting Conns [Enterprising Investor]

Stocks that UBS clients are short [Business Insider]

How hedge funds analyze earnings calls [IR Web Report]

Hedge fund manager skill is misperceived [aiCIO]

Hedge fund boost bets against the euro [Reuters]

Tudor opens first macro hedge fund in a decade [Bloomberg]

The digital wallet's future is now [TheStreet]

Focus on how not to lose money [AAII]

Investment management fees are higher than you think [CFA Institute]

Simon Lack responds to AIMA's hedge fund cheerleading [AR+Alpha]

Kodak investor forms shareholder committee [PR]

5 mega trends shaping tomorrow's customers [BBC]

The smart money is on big data [All Things D]

25 stocks for the long haul [CNNMoney]

Player folds quad 8's at World Series of Poker [WSOP]

Steve Cohen's SAC Capital Boosts Aeropostale Position (ARO)

Steve Cohen's hedge fund firm SAC Capital filed a 13G with the SEC regarding its position in Aeropostale (ARO). 

Per the filing, the hedge fund now has a 5.1% ownership stake in ARO with 4,113,160 shares.  This marks an increase of 125% in their position size since the end of the first quarter. 

Per Google Finance, Aeropostale is "a mall-based, specialty retailer of casual apparel and accessories, principally targeting 14 to 17 year-old young women and men through its Aeropostale stores and 4 to 12 year-old kids through its P.S. from Aeropostale stores. P.S. from Aeropostale products can be purchased in P.S. from Aeropostale stores, in certain Aeropostale stores, and online at"

For more portfolio activity from SAC Capital, click here