Friday, February 13, 2015

Free Sample Of Our Hedge Fund Wisdom Newsletter: New Issue Out In One Week

As 13F filings start to roll in, a brand new issue of our Hedge Fund Wisdom newsletter will be released in one week.  In the mean time, check out what you've been missing out on.  Embedded below is a free full past issue. 

It features equity analysis on two popular hedge fund bets: Allison Transmission (ALSN) and Armstrong World Industries (AWI).  It also shows you our newsletter format with consensus buy/sell lists, individual manager commentary, and of course the 13F filing summaries.

Free Sample IssueClick here to download a .pdf version

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What We're Reading ~ Hedge Fund Links 2/13/14

Stock picks from the Harbor Investment Conference [Business Insider]

This quiet investor has averaged 19% returns for more than a decade [Bloomberg]

Interview with Kyle Bass [RealVision] 

Lone Pine sounds alarm over tech valuations [ii alpha]

Lee Cooperman bullish despite fund loss [CNBC]

Citadel's Ken Griffin gives warning for road ahead [CNBC]

This woman is rocking the hedge fund world [CNBC]

Is gender a factor in fund performance? [FT]

Hedge funds keep winning despite losing [WSJ]

Hedge fund-backed investor puts himself up for GM board [Dealbook]

Why the smart money is running from hedge funds [Marketwatch]

Hedge funds can benefit by using captive insurance companies [Forbes]

Fund pros who live together, buy together [WSJ]

Blackstone's chief has a warning for Wall Street's entrepreneurs [Dealbook]

Nelson Peltz & Trian Partners' Presentation on DuPont

Nelson Peltz's activist investment firm Trian Partners has been involved with shares of duPont (DD) for a little while now and recently released a presentation entitled "A Referendum on Performance and Accountability"

Embedded below is Trian Partners' presentation "DuPont Can Be Great":

You can download a .pdf copy here.

Wednesday, February 11, 2015

What We're Reading ~ Analytical Links 2/11/15

Henry Singleton's five strategies for business success [ValueWalk]

A list of blogs/financial sites you should be reading [Morgan Housel]

A look at AutoCanada [Value Venture]

A pitch on Graham Holdings [Beyond Proxy]

Meditations on the Eurozone and secession [All About Alpha]

Investment Managers are human too [Squared Away]

Thoughts about risk and portfolio management [Value Venture]

The digital future of TV networks & the original series crunch [Media Redefined]

Zulily: the billion-dollar e-commerce company you know nothing about [Fast Company]

China's biggest problem [Joe Magyer]

Devaluation by China is the next great risk for a deflationary world [Telegraph]

General Motors: saved by the trucks [Economist]

Why Nordstrom's digital strategy works [HBR]

Amaya: is PokerStars a high-quality, high-growth business? [Alpha Vulture]

Baupost Group Starts Bellatrix Exploration Stake, Adds to SunEdison, Reduces Syneron Medical

Seth Klarman's hedge fund firm Baupost Group has filed three 13G's with the SEC.

New Position in Bellatrix Exploration

First, Baupost Group has disclosed a new equity position in Bellatrix Exploration (BXE) and they now own 11.38% of the company with over 21.8 million shares.  The filing was made due to activity on January 31st.

Per Google Finance, Bellatrix Exploration is "a Canada-based company engaged in exploration and production of oil and gas. The Company is focusing on developing its two core resource plays, the Cardium and the Notikewin/Falher intervals. The Cardium is into accumulation of light oil in the Western Canadian Sedimentary Basin with approximately 20,000 square miles and 1.38 Billion barrels produced to date. Notikewin/Falher is located in a regional stacked Upper Mannville Channel. The main type of reservoir is incised channel fill sandstones cutting finer-grained non-marine deposits."

Increases SunEdison Semiconductor Position

Second, Seth Klarman's firm has increased its position in SunEdison Semiconductor (SEMI).  They now own 19.03% of the company with over 7.89 million shares.  This is an increase of over 3.75 million shares since the end of the third quarter and the filing was due to activity on January 31st.

Per Google Finance, SunEdison Semi "is engaged in the development, manufacture and sale of silicon wafers to the semiconductor industry. The Company’s products include polished, epitaxial (EPI), silicon on insulator (SOI), perfect silicon and magic denuded zone (MDZ) wafers ranging in diameter from 100 millimeter (mm) to 300 mm. The Company sells its products to semiconductor manufacturers, including integrated device manufacturers and pure-play semiconductor foundries, and to a lesser extent, companies that specialize in wafer customization."

Decreases Syneron Medical Exposure

Third, Baupost has disclosed a 3.07% ownership stake in Syneron Medical (ELOS) with over 1.12 million shares.  This is a decrease of over 1.86 million shares from their previous stake at the end of the third quarter.  The filing was required due to portfolio moves on January 31st.

Per Google Finance, Syneron Medical "designs, develops and markets aesthetic medical products based on its various technologies including its Electro-Optical Synergy (ELOS), technology, which uses the synergy between electrical energy, including radiofrequency (RF) energy, and optical energy to provide aesthetic medical treatments. The Company’s products, which it sells primarily to physicians and other practitioners, target a range of non-invasive aesthetic medical procedures, including hair removal, wrinkle reduction, rejuvenation of the skin’s appearance through the treatment of superficial benign vascular and pigmented lesions, acne treatment, treatment of leg veins, treatment for the temporary reduction in the appearance of cellulite and thigh circumference and laser-assisted lipolysis."

You can view additional recent portfolio activity from Baupost Group here.

Makaira Partners Trims Capella Education Stake

Tom Bancroft's hedge fund firm Makaira Partners has filed an amended 13G with the SEC regarding their position in Capella Education (CPLA).  Per the filing, Makaira now owns 2.4% of the company with 296,437 shares.

This means they've reduced their position size by 178,420 shares since the third quarter.  The notice was made due to activity on December 31st.

For more from this manager, we just posted up other recent activity from Makaira Partners here.

Per Google Finance, Capella Education is "an online postsecondary education services company. The Company offers doctoral, master’s and bachelor’s programs in the markets. The Company focuses on masters’ and doctoral degrees. The Company targets relevant portions of the adult learner population and provide offerings in demand areas of study such as business and information technology, health care and nursing, social and behavioral science, education and public service leadership. The Company’s support services include: academic services, such as advising, writing, tutoring and research services; administrative services, such as online class registration and transcript requests; library services; financial aid counseling and career counseling services."

Tuesday, February 10, 2015

Corvex Management Increases ARCP Stake, Writes Letter to Board

Keith Meister's hedge fund firm Corvex Management has filed an amended 13D with the SEC regarding their position in American Realty Capital (ARCP).  They now own 7.8% of the company with exposure to over 70.6 million shares.

This is an increase of over 5.9 million shares since Corvex first reported its ARCP stake in December.  They acquired call options and common stock in late December/early January and sold put options as well.

The activist filing also includes an open letter that Corvex has written to the board of ARCP and to candidates for Chairman and CEO.  You can read the full letter here.

Per Google Finance, American Realty Capital is "a real estate investment trust (REIT). The Company owns and acquires single-tenant, freestanding commercial real estate primarily subject to medium-term net leases with credit quality tenants." 

Phil Hempleman's Ardsley Partners Adds To Bioscrip

Phil Hempleman's hedge fund firm Ardsley Partners has filed a 13G with the SEC regarding their position in Bioscrip (BIOS).  Per the filing, Ardsley now owns 5.1% of the company with over 3.53 million shares.

They've increased their position size by over 1.9 million shares since the end of the third quarter.  The filing was made due to activity on January 29th.

Hempleman founded Ardsley in 1987 and is a long/short equity focused fund that uses bottom-up stockpicking to build its portfolio.  We've covered other portfolio activity from Ardsley here.

Per Google Finance, Bioscrip is "provides home infusion and other home healthcare services. The Company’s services are designed to improve clinical outcomes for patients with chronic and acute healthcare conditions while controlling overall healthcare costs. The Company’s platform provides nationwide service capabilities and the ability to deliver clinical management services that offer patients a high-touch, home-based and community-based care environment. Its core services are provided in coordination with, and under the direction of the patients' physicians."

JANA Partners Completely Exits PetSmart

After going activist on PetSmart (PETM), Barry Rosenstein's hedge fund JANA Partners got the company sold and has been trimming its exposure to the stock since.  Now, in their latest 13D filing with the SEC, we see that JANA has completely exited PetSmart shares.  The filing was made due to activity on February 5th.

As the stock has effectively traded sideways as a risk arbitrage play, one possible explanation is that JANA didn't want to sit around and wait to capture a tiny spread and instead saw more attractive uses for that capital.

PetSmart is set to be acquired by BC Partners in an $8.7 billion deal.

Per Google Finance, PetSmart "supplies products, services and solutions for the lifetime needs of pets. The Company operates a website for pet supplies, foods and different animal needs. The Company's stores also feature pet styling salons that offer pet grooming services, from full-service styling to baths, toenail trimming and teeth cleaning."

Makaira Partners Increases Wesco Aircraft Stake

Tom Bancroft's hedge fund firm Makaira Partners has filed a 13G with the SEC regarding their position in Wesco Aircraft Holdings (WAIR).  Per the filing, Makaira now owns 7.5% of the company with over 7.37 million shares.

This is an increase of over 1.62 million shares since the end of the third quarter.  The filing was made due to portfolio activity on December 31st.  Wesco was already their top holding and they've further increased their stake.

If you're unfamiliar with Makaira, manager Tom Bancroft was listed as one of the people Todd Combs of Berkshire Hathaway would choose when asked who else he would hire.  The other two names were Lou Simpson and Meryl Witmer.   Makaira runs a smaller portfolio, with 10 stocks listed in their Q3 2014 13F filing. 

Per Google Finance, Wesco Aircraft "formerly Wesco Holdings, Inc., a holding company for Wesco Aircraft Hardware Corp. The Company is a distributor and provider of supply chain management services to the global aerospace industry. Its services range from traditional distribution to the management of supplier relationships, quality assurance, kitting, just-in-time (JIT), delivery and point-of-use inventory management."

Third Point Q4 Letter: New Position in Fanuc

Dan Loeb's hedge fund Third Point is out with their fourth quarter letter to investors.  They reveal their thesis on a new long position in Fanuc and touch on their pre-existing long Amgen (AMGN).  Additionally, they highlight general market thoughts and take another look at the situation in Greece.

They've lowered gross and net exposures this year, but are looking to "add exposure during market dislocations."  Their letter notes they're investing in various large cap companies where they can engage with constructive talks with management about improving shareholder value.

Embedded below is Third Point's full Q4 2014 letter:

For more from this manager, be sure to check out Dan Loeb's recommended reading list.

Monday, February 9, 2015

Balyasny Asset Management Starts Peabody Energy Position

Dmitry Balyasny's hedge fund firm Balyasny Asset Management has filed a 13G with the SEC regarding shares of Peabody Energy (BTU).   Per the filing, Balyasny now owns 5.17% of the company with over 14 million shares.

This is a newly disclosed equity position for the firm as they did not own a position at the end of the third quarter.  The filing was made due to activity on January 30th.

Per Google Finance, Peabody Energy "owns interests in 28 active coal mining operations located in the United States and Australia. The Company has a majority interest in 27 of those coal operations and a 50% equity interests in the Middlemount Mine in Australia. The Company also owns a noncontrolling interest in a mining operation in Venezuela. In addition to the Company's mining operations, the Company markets and broker coals from its operations and other coal producers, both as principal and agent, and trade coal and freight-related contracts through trading and business offices. The Company conducts business through four principal segments: Western United States. Mining, Midwestern U.S. Mining, Australian Mining and Trading and Brokerage."

You can view more recent portfolio activity from Balyasny Asset Management here.

Cantillon Capital Exits The Brink's Company Stake

William von Mueffling's investment firm Cantillon Capital has filed a 13G with the SEC regarding shares of The Brink's Company (BCO).  Per the filing, Cantillon no longer holds any shares.

The filing was made due to activity on December 31st.  Previously, they held over 3 million shares of BCO.

Cantillon used to be a hedge fund, but in around five years ago morphed into a long-only firm.  To learn more about this manager, head to von Mueffling's interview with Columbia Business School.

Per Google Finance, The Brinks Company is "a provider of secure logistics and security solutions services ATM replenishment and maintenance, secure international transportation of valuables and cash management services, to financial institutions, retailers, government agencies including central banks, mints, jewelers and other commercial operations around the world. The Company operates in four geographic segments: Latin America; Europe, Middle East, and Africa (EMEA); Asia Pacific, and North America."

Alex Denner's Sarissa Capital Starts Aegerion Pharmaceuticals Stake

Alex Denner's hedge fund firm Sarissa Capital has filed a 13D with the SEC regarding shares of Aegerion Pharmaceuticals (AEGR).  Per the filing, Sarissa now owns 5.76% of the company with over 1.63 million shares.

Prior to founding Sarissa, Denner worked with Carl Icahn and before that was at Viking Global.  Sarissa's focus is the healthcare/biopharma space.

This is a newly disclosed position as Sarissa did not own any AEGR shares at the end of the third quarter.  The disclosure was made due to portfolio activity on January 30th.  They were out buying primarily in the $23-24 range between January 14th and February 4th.

The activist 13D filing notes that Sarissa intends to engage in discussions with management and has the standard boilerplate under the "purpose of transaction" section.

Per Google Finance, Aegerion Pharmaceuticals is "a biopharmaceutical company dedicated to the development and commercialization of innovative therapies for patients with debilitating rare diseases. The Company’s first product, lomitapide, received marketing approval, under the brand name Juxtapid capsules, from the United States Food and Drug Administration as an adjunct to a low-fat diet and other lipid-lowering treatments in adult patients with homozygous familial hypercholesterolemia (HoFH)."