Thursday, August 25, 2016

Warren Buffett Buys More Phillips 66

Warren Buffett's Berkshire Hathaway has filed a Form 4 with the SEC regarding his stake in Phillips 66 (PSX).  Per the filing, Buffett acquired more shares on August 22nd, 23rd, and 24th.

In total, he purchased 704,181 shares at weighted average prices of around $77.04 - $78.15.  After these transactions, Berkshire now owns 79.48 million shares of PSX.

We've highlighted in the past how Buffett has been acquiring PSX shares in recent months.

Per Google Finance, Phillips 66 is "an energy manufacturing and logistics company with midstream, chemicals, refining and marketing, and specialties businesses. The Company operates its business through four segments: Midstream, Chemicals, Refining, and Marketing and Specialties (M&S). The Midstream segment includes its equity investment in DCP Midstream , LLC (DCP Midstream) and its investment in Phillips 66 Partners LP. The Midstream segment consists of three business lines: Transportation, DCP Midstream and NGL. The Midstream segment also transports crude oil and other feedstocks to refineries and other locations, and delivers refined and specialty products to market, and provides storage services for crude oil and petroleum products. The Chemical segment manufactures and markets petrochemicals and plastics. The refining segment buys, sells and refines crude oil and other feedstocks into petroleum products. The M&S segment purchases for resale and markets refined petroleum products.."

ValueAct Capital Adds to Alliance Data Systems, 21st Century Fox Stakes

Jeff Ubben's activist firm ValueAct Capital has submitted a few filings to the SEC recently regarding his positions.

ValueAct Adds To Alliance Data Systems

First, Ubben's firm has filed an amended 13D regarding their newer position in Alliance Data Systems (ADS).  Per the filing, ValueAct now owns 8.5% of the company with 5 million shares.

This is an increase over the 3.28 million shares they owned at the end of the second quarter.  They've been buying as recently as late August at prices of $199.13 - $204.07.

The 13D also notes that ValueAct intends to have conversations with management and the board on ways to enhance shareholder value.

We recently detailed the rest of ValueAct's portfolio (and 24 other hedge funds) in the brand new issue of our newsletter.

Per Google Finance, Alliance Data Systems is "is a provider of data-driven marketing and loyalty solutions serving consumer-based businesses in a range of industries. The Company offers a portfolio of integrated outsourced marketing solutions, including customer loyalty programs, database marketing services, end-to-end marketing services, analytics and creative services, direct marketing services, and private label and co-brand retail credit card programs. The Company operates through three segments: LoyaltyOne, which provides coalition and short-term loyalty programs through the Company's Canadian AIR MILES Reward Program and BrandLoyalty; Epsilon, which provides end-to-end, integrated marketing solutions, and Card Services, which provides risk management solutions, account origination, funding, transaction processing, customer care, collections and marketing services for the Company's private label and co-brand retail credit card programs."

Jeff Ubben Buys More 21st Century Fox

Second, ValueAct Capital has filed a Form 4 with the SEC regarding its stake in 21st Century Fox (FOX / FOXA).  Per the filing, ValueAct was out buying FOX shares on August 16th - 18th.

Ubben purchased 3 million shares in total at prices ranging from $25.86 - $26.13.  After these buys, they now own over $47.3 million shares.  Ubben is on FOX's board and it seems they want the company to go more direct to consumer with their media offerings.

You can view the rest of Jeff Ubben's portfolio here.

Per Google Finance, 21st Century Fox is "a media and entertainment company. The Company operates through segments: Cable Network Programming, Television, Filmed Entertainment, and Other, Corporate and Eliminations. The Company produces and licenses news, business news, sports, general entertainment, factual entertainment and movie programming for distribution primarily through cable television systems, direct broadcast satellite operators, telecommunications companies and online video distributors in the United States and internationally. The Company is engaged in the operation of broadcast television stations and the broadcasting of network programming in the United States. The Company is engaged in the production and acquisition of live-action and animated motion pictures for distribution and licensing in all formats in all entertainment media, and the production and licensing of television programming around the world."

Howard Marks' New Memo "Political Reality"

Oaktree Capital's Chairman Howard Marks has been busy writing memos these days.  We posted his most recent note, Economic Reality recently.  Now he's released another missive, entitled "Political Reality."

As the title implies, this one is less investing related and more about the political and economic environment.  

Embedded below is Howard Marks' memo:

You can download a .pdf copy here.

For more from Marks, be sure to also check out his highly praised book on investing, The Most Important Thing.

Sunday, August 21, 2016

What Stocks Have Top Hedge Funds Been Buying & Selling?

Want to know what stocks hedge funds have been buying & selling?  Our 82-page quarterly newsletter summarizes the latest 13F filings of 25 top funds.  The brand new Q2 issue of Hedge Fund Wisdom is now available.  Subscribers please go to and login to download.

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- Investment thesis summaries on ServiceMaster (SERV) and Western Digital (WDC).  Catch up quickly on why hedge funds have been active in these stocks.

Last quarter's issue featured write-ups on Yelp (YELP) and AmerisourceBergen (ABC) which are up 53% and 18.75% respectively since then (versus 6.4% for the S&P 500).  When you sign up below, you'll also get immediate access to the full archive of issues too.

- New consensus buy/sell lists: see what the most popular trades are

- Updated portfolio sheets of 25 top hedge funds including Baupost Group, Appaloosa, Viking, Lone Pine, Third Point, ValueAct, Farallon and other big names

- Commentary on each fund's moves including short sale positions in European markets when applicable

- New fund added this quarter: the newsletter now also tracks Glenn Greenberg's Brave Warrior Advisors

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