Friday, July 18, 2014

Third Point's Q2 Letter on Royal DSM & International Holdings

Dan Loeb's hedge fund Third Point is out with its Q2 letter which focuses on some of their international positions.

They continue to feel that change is coming in Japan and are finding compelling individual investments there (especially with event-driven components).

The letter also details Third Point's investment in Kroton Educacional SA in Brazil, Fibra Uno in Mexico, and Argentinian oil company YPF.

Dan Loeb's fund also writes an in-depth thesis on Royal DSM, a global health company.

Embedded below is Third Point's Q2 letter:

You can download a .pdf copy here.

For more on this hedge fund, you can also view Third Point's Q1 letter.

What We're Reading ~ Hedge Fund Links 7/18/14

Profile of Lee Cooperman [CNBC]

Excerpts from Paulson & Co's latest letter [ValueWalk]

Investors increasingly looking to make hedge fund allocations [COO Connect]

Viking Global preps illiquid investments fund [CNBC]

The top hedge fund in a post financial crisis world is... [II Alpha]

Profile of RenTec's Jim Simons [NYTimes]

KKR doubles down on hedge funds [WSJ]

Tiger Global Exits Tuniu (TOUR) Position

Chase Coleman and Feroz Dewan's hedge fund Tiger Global has filed an amended 13G with the SEC regarding shares of Tuniu (TOUR).  Per the filing, Tiger Global no longer owns an equity stake in the company.

The filing was made due to activity on July 15th.  We previously disclosed Tiger Global's new Tuniu stake back in May as the company completed its IPO then.  But now they've exited that position.

For more recent activity from this hedge fund, check out Tiger Global's moves here.

Per Google Finance, Tuniu is "an online leisure travel company. The Company offers a selection of packaged tours, including organized tours and self-guided tours, as well as travel-related services for leisure travelers. It offers packaged tours sourced from over 3,000 travel suppliers, covering over 70 countries, as well as all popular tourist attractions in China. The Company’s product portfolio consists of over 100,000 stock-keeping units (SKUs) of organized tours, over 100,000 SKUs of self-guided tours, and tickets for over 1,000 domestic and overseas tourist attractions. Its online platform, which consists of its Website and mobile platform, provides comprehensive product and travel information through user-friendly interfaces to enable leisure travelers to plan their travels and search for itineraries. Its online platform contains photos, information and recommendations for all destinations it covers."

Thursday, July 17, 2014

What We're Reading ~ Analytical Links 7/17/14

Serengeti Asset Management's thesis on Energy XXI [Harvest]

Investing Psychology: The Effects of Behavioral Finance on Investment Choice [Tim Richards]

Analyzing the impact of Fed rate hikes on markets & economy [Advisor Perspectives]

More notes from the Delivering Alpha conference: Paulson, Peltz & Icahn [Reformed Broker]

HBO said valued at $20 billion by Fox seeking Netflix killer [Bloomberg]

Most important investing trait? Patience [Alpha Baskets]

US stands to lose billions from corporate tax inversions [WSJ]

Wednesday, July 16, 2014

Glenview Capital Boosts Carter's Position

Larry Robbins' hedge fund firm Glenview Capital has filed a 13G with the SEC regarding shares of Carter's (CRI).  Per the filing, Glenview now owns 6.84% of the company with over 3.67 million shares.

This marks an increase of over 2.1 million shares in their position size since the end of the first quarter.  The filing was made due to activity on July 10th.

Glenview isn't the only hedge fund that's been out buying CRI shares, either.  We recently highlighted that Hound Partners added to their Carter's stake too.

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."

Stan Druckenmiller's Thoughts at Delivering Alpha Conference

At CNBC and Institutional Investor's Delivering Alpha conference today, legendary investor Stan Druckenmiller shared his latest thoughts.

At the event, Druckenmiller said he can't bet as big as he used to these days.  He also noted that other investors like David Tepper and George Soros have the biggest (you know what) on Wall Street these days.

Also, he knocked IBM as a company that's spending all of its money on share buybacks instead of on innovating and this could come back to haunt them as they get passed by modern technology companies.

Regarding the latest slew of IPO's, Druckenmiller pointed out that 80% of those companies don't really have earnings.

Turning to the Fed, he also argued that the consequences of monetary policy will be a lot worse than they think and said their policy is baffling.

He thinks we have to keep dancing until the music stops, but the problem is most people won't be able to exit fast enough once it happens.

Lee Cooperman's Favorite Stock Picks at Delivering Alpha Conference

At CNBC and Institutional Investor's Delivering Alpha conference today, Omega Advisors' Lee Cooperman shared his favorite stock picks.

He likes Actavis (ACT), a tax inversion play, Citigroup (C), a good buy he says because the economy is healing with loan demand and one that could narrow the discount to book value over time, as well as Gaming and Leisure Properties (GLPI) and Nordic American Offshore (NAO).

Other plays he likes include: QEP Resources (QEP), Supervalu (SVU), Louis XIII (577 HK), and Monitise (MONI.LN), the mobile payments play he's pitched before.

Lastly, he also mentioned Thermo Fisher Scientific (TMO), KKR (KKR) and Sandridge Energy (SD).

Cooperman also noted that the last time the Fed raised rates was in 2006 and around 25% of fund managers weren't really around to experience that.

He also joked that the last time he was bearish was during his Bar Mitzvah.

One quote that stood out from him was that, "if you buy something that's out of favor, things seem to happen to make you right."

Lee Cooperman will be presenting new investment ideas at the upcoming Value Investing Congress in a few months and readers can receive a discount to the event by registering here and using discount code: MARKETFOLLY

Larry Robbins' 6 Best Ideas at Delivering Alpha Conference

At CNBC and Institutional Investor's Delivering Alpha conference today, Glenview Capital's Larry Robbins highlighted his six best ideas.

His stock picks were: Thermo Fisher Scientific (TMO) which has been his largest holding, Monsanto (MON) which he previously pitched here, as well as HCA (HCA), Hertz (HTZ), National Oilwell Varco (NOV) and Flextronics (FLEX), a position he added to in May.

He likes that all of these can raise money on the cheap and then buyback shares.  So basically, his favorite investment idea is a theme of companies levering up.

Also, today we highlighted that Robbins has been buying Carter's (CRI) shares recently too.

Tuesday, July 15, 2014

Lone Pine Capital Starts Spirit Airlines Stake

Steve Mandel's hedge fund firm Lone Pine Capital has filed a 13G with the SEC on shares of Spirit Airlines (SAVE).  Per the filing, Lone Pine now owns 6% of the company with over 4.3 million shares.

This is a brand new position for the hedge fund as they did not own any shares at the end of Q1.  The filing was made due to activity on July 2nd.

You can view additional portfolio activity from Lone Pine here.

Citadel Ups Position in PHH Corp

Ken Griffin's Citadel has filed an amended 13G with the SEC regarding shares of PHH (PHH).  Per the filing, Citadel now owns 9.6% of the company with over 5.5 million shares.

This marks an increase of over 3.9 million shares in their position size since the end of the first quarter.  The filing was made due to activity on July 8th.  PHH recently said they would repurchase around 35% of shares.

Per Google Finance, PHH is "an outsource provider of mortgage and fleet management services. PHH operates in three segments: Mortgage Production, Mortgage Servicing and Fleet Management Services. The Company provides mortgage banking services to a range of clients, including financial institutions and real estate brokers, throughout the United States. The Company’s mortgage banking activities include originating, purchasing, selling and servicing mortgage loans through its wholly owned subsidiary, PHH Mortgage Corporation and its subsidiaries (collectively PHH Mortgage). It provides commercial fleet management services to corporate clients and government agencies throughout the United States and Canada through its wholly owned subsidiary. In July 2014, PHH sold its Fleet Management Services business, doing business as PHH Arval, to Element Financial Corporation."

Paulson & Co Updates CNO Financial Group Position

John Paulson's hedge fund firm Paulson & Co has filed an amended 13D with the SEC regarding shares of CNO Financial Group (CNO).  Per the filing, Paulson now owns 4.7% of the company with just over 10.55 million shares.

This marks a slight decrease of 1.9 million shares in their aggregate common stock exposure since the end of the first quarter.  The filing was made due to activity on June 26th.  Their position includes 5 million shares issuable upon exercise of Warrants.

We covered Paulson's original 13D on CNO in 2009.

Per Google Finance, CNO Financial Group is "a holding company for a group of insurance companies operating throughout the United States, which develops, markets and administers health insurance, annuity, individual life insurance and other insurance products. The Company sells its products through three distribution channels: career agents, independent producers (some of whom sell one or more of its product lines exclusively) and direct marketing. The Company’s operating segments include Bankers Life, Washington National and Colonial Penn, which are defined on the basis of product distribution; Other CNO Business, and corporate operations, consisted of holding company activities and noninsurance company businesses."

You can view additional recent portfolio activity from Paulson here.