Wednesday, May 22, 2013

What We're Reading ~ Analytical Links 5/22/13

A lesson from Warren Buffett: doubt yourself [WSJ]

Jelisavcic: This is an optimal time to invest in distressed debt [FINalternatives]

Are corporate profit margins abnormally elevated or sustainable? [Greenbackd]

Don't just do something, sit there [The Economist]

Steve Romick: trade into the gold you can eat, farmland [Forbes]

Why investors can't imagine a collapse of the bond market [WSJ]

Telecom's big players hold back the future [NYTimes]

Investor sentiment: fear and greed index [CNNMoney]

Hedge fund leverage approaches all-time high [ai-CIO]

National Bank (NBHC) on the prowl [Barrons]

Why Alibaba could be China's next big IPO [Reuters]

Anatomy of the 10-K [Wall Street Oasis]

How the SEC's marketing rules shortchange investors [ii alpha]

Is the asset management business set for consolidation? [Citywire]

Warren Buffett is bullish on women [CNN Money]

If MBAs are useless, we're all in big trouble [Quartz]

Ron Johnson's 5 key mistakes at J.C. Penney [Fast Company]

Viking Global Increases Intuitive Surgical (ISRG) Position

Andreas Halvorsen's hedge fund firm Viking Global Investors has filed a 13G with the SEC regarding shares of Intuitive Surgical (ISRG).  Per the filing, Viking has disclosed a 5.1% ownership stake in ISRG with 2,029,353 shares.

This marks around a 10% increase in the amount of shares they own since the end of the first quarter in March.  This filing was required due to portfolio activity on May 10th.

Viking over doubled its stake in ISRG during the first quarter and it's now one of their largest holdings.  Shares have fallen from $580 down to as low as $455 and currently trade around $485.  As such, ISRG shares are likely trading at or even below levels where the hedge fund was buying.

To see what other US stocks Viking Global has invested in, check out the brand new issue of our Hedge Fund Wisdom newsletter that was just released yesterday.

Per Google Finance, Intuitive Surgical is "designs, manufactures and markets da Vinci Surgical Systems and related instruments and accessories. A da Vinci Surgical System consists of a surgeon’s console, a patient-side cart and a high performance vision system. The da Vinci Surgical System translates a surgeon’s natural hand movements, which are performed on instrument controls at a console, into corresponding micro-movements of instruments positioned inside the patient through small incisions, or ports. The da Vinci Surgical System is designed to provide its operating surgeon with intuitive control, range of motion, fine tissue manipulation capability and three dimensional (3-D), high-definition (HD) vision while simultaneously allowing the surgeon to work through the small ports of MIS."

For more resources on this fund, we've also posted up a rare interview with Andreas Halvorsen.

Tiger Global Boosts Carter's (CRI) Stake

Chase Coleman's hedge fund firm Tiger Global filed a 13G with the SEC regarding their position in Carter's (CRI).  Per the filing, Tiger Global has revealed a 6.75% ownership stake in CRI with 4 million shares.

This marks a 36% increase in the amount of shares they own since the end of the first quarter.  This latest disclosure comes due to portfolio activity on May 9th.

To see the rest of Tiger Global's recent portfolio, check out the brand new issue of our premium newsletter that just came out yesterday.

Per Google Finance, Carter's is "a branded marketer of apparel for babies and young children in the United States. The Company owns two brand names in the children’s apparel industry, Carter’s and OshKosh. Its Carter’s brand provides apparel for children sizes ranging from newborn to seven. OshKosh brand provides its line of apparel for children sizes newborn to 12. Its Carter’s, OshKosh, and related brands are sold to national department stores, chain and specialty stores and discount retailers."

Larry Robbins' Glenview Capital Trims Tenet Healthcare (THC) Stake

Larry Robbins' hedge fund firm Glenview Capital just filed a Form 4 with the SEC regarding shares of Tenet Healthcare (THC).  Per the filing, Glenview sold 4 million shares of THC on May 14th at a price of $47.75.

After the transaction, Glenview still owns just over 9.8 million shares.  This means they've reduced their position size by around 29% as the hedge fund has finally locked in some profits on the name.

Tenet a Big Winner For Glenview

THC shares have been a huge winner for Glenview and we originally highlighted Glenview's thesis on hospitals a year ago.  That trade has performed extremely well, as THC is up over 120% since then.

As noted in our post on 2013 Q1 hedge fund performance, Glenview was up 17.94% at the end of the first quarter.  And this comes on top of a big 2012 where they returned 29% before fees.  Their basket bet on hospital stocks is a big reason why (and especially Tenet, their largest wager of the group).

And while Robbins' firm has sold some Tenet shares, we highlighted how Glenview recently added to another hospital play.

Per Google Finance, Tenet Healthcare is "an investor-owned health care services company whose subsidiaries and affiliates own and operate acute care hospitals, ambulatory surgery centers, diagnostic imaging centers and related health care facilities. Its core business is focused on providing acute care treatment, including inpatient care, intensive care, cardiac care, radiology services and emergency medical treatment, as well as outpatient services."

You can view the rest of Glenview's portfolio in our Hedge Fund Wisdom newsletter (new Q1 issue available now).

Tuesday, May 21, 2013

New Hedge Fund Wisdom Issue Now Available

The brand new first quarter issue of our premium Hedge Fund Wisdom newsletter is now available!  Subscribers please login at to download it.

In The New Issue

- Equity analysis of 3 stocks top hedge funds are buying:  Written by hedge fund analysts, this section quickly brings you up to speed on a company and the latest situation, summarizing the investment thesis.  If you missed it, we recently looked at the performance of stocks analyzed in past HFW issues and the numbers are pretty solid. See which 3 stocks are analyzed in the new issue by subscribing below!

- Brand new consensus buy/sell section:  Top 5 new buys, top 5 sells, top 5 additions, top 5 reductions.  Each list shows the most popular stocks hedge funds were trading and provides commentary on why they were buying/selling.

- Newly updated portfolios of 25 top hedge funds: See the latest holdings of Seth Klarman, David Tepper, Steve Mandel, David Einhorn, John Paulson, Chase Coleman and many more big names.

- Expert commentary on each fund's moves: We put each fund's activity into context.  We've been tracking these funds for 6+ years.

- 1 convenient document: All the important information aggregated to save you time.

See What Stocks Hedge Funds Have Been Buying, Subscribe Below

1-Year Subscription (save 20% with this choice): $299.99 per year

Quarterly Subscription: $89.99 per quarter

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Monday, May 20, 2013

Omega Advisors and Bridger Capital Disclose Stakes in PennyMac Financial Services

Two hedge funds filed disclosures with the SEC today regarding shares of recently public PennyMac Financial Services (PFSI).

Omega Advisors' PFSI Stake

Lee Cooperman's hedge fund Omega Advisors filed a 13D with the SEC on PennyMac Financial Services (PFSI) revealing they own 21.6% of the company with 2,759,600 shares. 

Omega purchased PFSI at $18 per share in the company's initial public offering on May 9th.  Cooperman's firm also picked up a few extra shares on May 14th at $19.71 for some of their managed accounts.

For more from this hedge fund, Lee Cooperman recently shared his market thoughts at the Skybridge Alternatives Conference (SALT).

Bridger Capital's Position in PFSI

Roberto Mignone's hedge fund Bridger Capital also filed a 13G with the SEC and disclosed a 13.5% ownership stake in the company with 1,500,000 shares due to activity on May 9th as well.

About PennyMac Financial Services

PennyMac Financial Services recently went public and is the parent firm to publicly traded subsidiary PennyMac Mortgage Investment Trust (PMT).

Per Google Finance, PennyMac Financial Services, Inc. is "a specialty financial services firm with a mortgage platform and integrated business focused on the production and servicing of United States residential mortgage loans and the management of investments related to the United States residential mortgage market. The Company operates in two segments: mortgage banking and investment management. Its principal mortgage banking subsidiary, PennyMac Loan Services, LLC (PLS), is a non-bank producer and servicer of mortgage loans in the United States. PLS is a seller/servicer for the Federal National Mortgage Association (Fannie Mae), and the Federal Home Loan Mortgage Corporation (Freddie Mac), each of which is a government-sponsored entity (GSE). The Company’s principal investment management subsidiary, PNMAC Capital Management, LLC (PCM), is an investment adviser. It manages PennyMac Mortgage Investment Trust (PMT), a mortgage real estate investment trust (REIT)."

Paulson & Co Adds to Dex Media Stake, Kyle Bass Discloses His DXM Position

John Paulson's hedge fund firm Paulson & Co filed an amended 13D and a Form 4 with the SEC regarding shares of Dex Media (DXM).  Per the filings, Paulson has disclosed a 13% ownership stake in DXM with 2.23 million shares.

This marks an increase of around 19% in their position size, up from the 1.87 million shares they owned at the end of April. The new disclosure was required due to portfolio activity on May 14th.

Dex Media is the combination of the former Dex One (former ticker DEXO) and Super Media (former ticker SPMD) entities.  They recently merged and reorganized.  Paulson previously owned shares of both and as such received shares of the merged company.

Kyle Bass' Hayman Capital Discloses DXM Stake

Hedge fund Hayman Capital also owns a large stake in DXM and founder Kyle Bass presented the case on Dex Media at the recent Ira Sohn Conference.

Today we get a sense as to how big Bass' equity position is in the newly combined company. Per portfolio activity on April 30th, Bass' Hayman Capital filed a 13G with the SEC on Dex Media and revealed a 9.7% ownership stake in DXM with 1,664,636 shares.

Bass also previously held shares in both Dex One and SuperMedia and as such received shares in the newly combined entity, Dex Media.

Per Yahoo Finance, Dex Media "engages in the publication and marketing of directories, which include Yellow Pages and White Pages in the United States. The company also offers Internet-based telephone directory and database marketing services." 

Soros Fund Adds to Johnson Services Stake

George Soros' family office Soros Fund Management has been gradually adding to its position in London listed Johnson Services Group (LON:JSG).  Soros first disclosed the position in July of 2012, but since then they've nearly doubled it.

Soros Fund has revealed they own 7.19% of voting rights in Johnson Services Group as of May 9th.  This is up from 5.68% in March and almost double from their original 3.87% position in July of 2012.

Per Google Finance – “Johnson Service Group PLC provides services to both consumers and     businesses. The Company operates in four segments: Textile Rental, Facilities Management,     Drycleaning and All Other Segments. Textile Rental consists of workwear rental supply and     laundering, linen rental for the hotel, catering and corporate hospitality markets and sale of ancillary     items. Facilities Management includes delivering building, facilities and property management     services to public, commercial and retail organizations throughout the United Kingdom. Dry cleaning     has over 460 stores nationwide, provides dry cleaning, laundry and ironing services, carpet cleaning     and the supply of dry cleaning consumables and equipment. On February 14, 2012, SGP Property     & Facilities Management Limited (SGP), its subsidiary, acquired specified contracts and assets     of Nickleby & Co. Limited. In December 2012, the Company sold Alex Reid Limited (Alex Reid) to     Christeyns UK Limited (Christeyns).”

For more on this investment manager, check out Soros Fund's new position.