Balyasny Asset Management Starts Walter Energy Stake

Dmitry Balyasny's firm Balyasny Asset Management has filed a 13G with the SEC regarding shares of Walter Energy (WLT).  Per the filing, Balyasny now owns 5.22% of the company with 3,264,002 shares.

The filing was required due to activity on September 10th and this is a newly disclosed position for the hedge fund as they did not own any shares at the end of Q2.

This isn't the first time they've owned a stake either.  Balyasny previously owned WLT shares a little under a year ago.

Per Google Finance, Walter Energy is "a producer and exporter of metallurgical coals for the global steel industry. The Company also produces thermal coal and industrial coal, anthracite, metallurgical coke, coal bed methane gas (natural gas) and other related products. The Company operates in two segments: the Company's United States operations segment and its Canadian and United Kingdom operations segment. United States operations segment includes the operations of the Company's underground mines, surface mines, coke plant and natural gas operations located in Alabama and its underground and surface mining operations located in West Virginia. The Canadian and United Kingdom operations segment includes the operations of surface mines in Northeast British Columbia (Canada) and an underground mine and surface mine in South Wales (U.K.)."

Balyasny Increases Walter Energy Position

Dmitry Balyasny's hedge fund firm Balyasny Asset Management recently filed a 13G with the SEC regarding shares of Walter Energy (WLT).  Per the filing, Balyasny has revealed a 5.36% ownership stake in WLT with shares.

This marks over a 71% increase in the amount of shares they own since the end of September.  The latest disclosure was required due to portfolio activity on November 15th.

Per Google Finance, Walter Energy is "a producer and exporter of metallurgical coal for the global steel industry and also produces steam coal, coal bed methane gas (natural gas), metallurgical coke and other related products. The Company operates in two segments: its United States Operations segment, and Canadian and United Kingdom Operations segment."

Steve Cohen's Hedge Fund Has Been Buying These 10 Stocks

Steve Cohen's hedge fund SAC Capital has been busy filing 13G's with the SEC the past few days.  In total, they've filed ten different times.  Cohen was named one of the top 25 highest earning hedge fund managers of 2011.  Here's his fund's latest activity:


1. Sequenom (SQNM) - The hedge fund has boosted its holdings in SQNM by quite a large margin since the end of last year.  They now own 5.4% of the company with 6,128,919 shares. This is due to portfolio movement on May 7th.

Per Google Finance, Sequenom is "a diagnostic testing and genetics analysis company. The Company is focused on providing products, services, diagnostic testing, applications and genetic analysis products that translate the results of genomic science into solutions for biomedical research, translational research, molecular medicine applications, and agricultural, livestock and other areas of research."


2. Zillow (Z) - This is a brand new position for SAC Capital as they did not report a stake in their last disclosure at the end of 2011.  They now own 5% of Zillow with 1,011,501 shares due to activity on May 7th.

Per Google Finance, Zillow is "a real estate information marketplace. The Company provides information about homes, real estate listings and mortgages, through its Website and mobile applications, enabling homeowners, buyers, sellers and renters to connect with real estate and mortgage professionals."


3. Western Refining (WNR) - SAC Capital has increased its stake by a whopping 287% since the beginning of the year.  They now own a 5.4% ownership stake in the company with 4,860,883 shares due to activity on May 4th.

Per Google Finance, Western Refining is "an independent crude oil refiner and marketer of refined products and also operates service stations and convenience stores. WNR operates in three business segments: the refining group, the wholesale group, and the retail group."


4. Yelp (YELP) - The company completed its initial public offering at the beginning of March this year and this is a brand new position for Cohen's hedge fund.  They now own 415,847 shares, or 5.1% of the company.  They were required to file a disclosure due to crossing a regulatory threshold in trading on May 4th.

Per Google Finance, Yelp "connects people with local businesses. Its users contribute reviews of every type of local business, from restaurants, boutiques and salons to dentists, mechanics and plumbers. Its platform provides local businesses with a range of free and paid services, which help them to engage with consumers at moment when they are deciding where to spend their money."


5. Movado Group (MOV) - SAC Capital now owns 5.11% of Movado Group as they've built a position of 943,890 shares.  They only owned a tiny 11,347 share position at the end of 2011 so they've certainly ratcheted up their stake this year.

Per Google Finance, Movado "designs, sources, markets and distributes fine watches. The Company’s portfolio of brands consists of Movado, Ebel, Concord, ESQ, Coach Watches, HUGO BOSS Watches, Juicy Couture Watches, Tommy Hilfiger Watches and Lacoste Watches. The Company operates in two segments: Wholesale and Retail."


6. Accretive Health (AH) - This stake has been increased since their last disclosure and SAC now owns 5% of the company with 5,005,600 shares due to activity on May 4th.

Per Google Finance, Accretive Health is "a provider of services to the healthcare providers. The Company’s three offerings are revenue cycle management; quality and total cost of care, and physician advisory services. Its integrated revenue cycle management service offering helps the United States healthcare providers to manage their revenue cycles, which encompass patient registration, insurance and benefit verification, medical treatment documentation and coding, bill preparation and collections."


7. Walter Energy (WLT) - The hedge fund disclosed ownership of 3,143,160 shares of WLT due to trading activity on May 3rd.  They now own 5% of the company and have boosted their holdings by around 30% since the end of 2011.

Per Google Finance, Walter Energy is "a producer and exporter of metallurgical coal for the global steel industry and also produces steam coal, coal bed methane gas (natural gas), metallurgical coke and other related products."


8. Santarus (SNTS) - Cohen's firm started a new position in Santarus and now own 3,231,392 shares, or 5.2% of the company.

Per Google Finance, Santarus is "a specialty biopharmaceutical company focused on acquiring, developing and commercializing products that address the needs of patients treated by physician specialists."


9. Clearwater Paper (CLW) - This position is slightly different in that SAC filed an activist 13D on the name.  As of the beginning of May, they now own 1,640,000 shares (or 7.2% of the company).  In recent trading, they were out purchasing shares on April 26th, 27th, and 30th at prices in the high $32.xx and low $33.xx.

The hedge fund feels that Clearwater would be worth more if it split up.  They feel that the sum of the parts are worth more separate than in their current combined entity.  SAC portfolio manager David Rosen wrote a letter to the company as SAC is currently the third largest shareholder.

They feel that the company's consumer products division is worth between $990 million and $1.4 billion.  They argue that the pulp and paperboard division is worth $770 million to $960 million.  But as of recent trading, Clearwater's entire market cap is only $786 million.


10. Select Comfort (SCSS) -SAC Capital now owns 5.02% of Select Comfort (SCSS) with 2,848,996 shares.  At the end of 2011, they only held a tiny position so they've boosted their holdings by over 1,500% since then.

Per Google Finance, Select Comfort is "a bed manufacturer and retailer. The Company designs, manufactures, markets and distributes the SLEEP NUMBER bed and other sleep-related products. The Sleep Number bed features DualAir technology, which allows couples to adjust each side of the mattress to his or her level of firmness."


And if you missed it, we've posted up even more of SAC Capital's portfolio activity here.

Phil Falcone's Harbinger Capital Bets Big on Sprint Nextel (S): 13F Filing

(This post is part of our series on tracking hedge fund portfolios. If you're unfamiliar with tracking investments they disclose via SEC filings, check out our series preface on hedge fund 13F filings.)

Next up is Philip Falcone's hedge fund Harbinger Capital Partners. Falcone runs his $6 billion hedge fund with a focus both on distressed and equity plays and often takes concentrated positions in companies. And, that last reason is exactly why we track them. Even though we can't see their distressed plays (they aren't required to disclose them), we can track their equity plays that they have high conviction in. You aren't going to devote large portions of your portfolio to one company unless you truly believe in your thesis. After having a dismal 2008, Harbinger had a solid showing last year as they finished up 46.5% as we noted in our 2009 hedge fund performance numbers post.

The positions listed below were Harbinger's long equity, note, and options holdings as of December 31st, 2009 as filed with the SEC. All holdings are common stock unless otherwise denoted.


Brand New Positions
Sprint (S)
Exco Resources (XCO)
Take Two Interactive (TTWO)
SPDR Gold Trust (GLD)
Corn Products (CPO)
US Airways (LCC)
Superior Well Services (SWSI)
Cloud Peak Energy (CLD)
Alpha Natural Resources (ANR)
iStar Financial (SFI)
Delta Petroleum Bond
The rest of the new stakes were each less than 0.25% of reported holdings: ICO Global (ICOG), MGIC Investment (MTG), & Strategic Hotels (BEE)


Increased Positions
Harry Winston Diamond (HWD): Increased by 587%
Walter Energy (WLT): Increased by 128.5%
Complete Production (CPX): Increased by 44.5%
Mercer International (MERC): Increased by 11.7% (we detailed their convertible bond exposure)


Reduced Positions
Interpublic Group (IPG): Reduced by 46.5%
Freeport McMoran (FCX): Reduced by 38.2%
Calpine (CPN): Reduced by 28.1%
Media Gen (MEG): Reduced by 18.1%


Removed Positions (Sold out completely):
McDermott (MDR)
Solutia (SOA) ~ we saw this coming with their previous repetitive sales
Zapata (ZAP)
Gentek (GETI)
USEC Bond International Coal (ICO)


Top 15 Holdings by percentage of assets reported on 13F filing

1. Calpine (CPN): 18.47%
   
2. Sprint Nextel (S): 15.35%
   
3. New York Times (NYT): 12.71%
   
4. Walter Energy (WLT): 10.42%
   
5. Complete Production Services (CPX): 5.31%
   
6. Interpublic Group (IPG): 4.81%
   
7. Exco Resources (XCO): 4.75%
   
8. Freeport McMoran (FCX): 3.82%
   
9. Take Two Interactive (TTWO): 3.26%
   
10. SPDR Gold Trust (GLD): 3%
    
11. Corn Products (CPO): 2.35%
    
12. US Airways (LCC): 2.17%
    
13. Terrestar (TSTR): 1.66%
    
14. Harry Winston Diamond (HWD): 1.57%
    
15. Superior Well Services (SWSI): 1.37%
    

Harbinger runs quite a concentrated equity portfolio and remember that a lot of their holdings are also in distressed assets, Falcone's specialty. They turned over their portfolio quite significantly in the fourth quarter as a large portion of their top holdings are brand new positions. Most notable will be their stake in Sprint (S) which takes up over 15% of their reported assets. But also take not of their Exco Resources stake (XCO). We did, on the other hand, already know about their new Superior Wells position. This just goes to show that you have to track all SEC filings, not just the 13F's, as hedge funds will often give you glimpses into their portfolio on a much more real-time basis.

Most people will take notice of Harbinger's new stake in the gold ETF: GLD. So many hedge funds have some exposure to gold these days it's not even funny. We found two of Harbinger's new stakes intriguing. Firstly, Falcone has joined Carl Icahn in buying TTWO shares. Additionally, like David Tepper's Appaloosa Management, Falcone bought shares of airline LCC.

We saw some notable sales as Harbinger sold completely out of Solutia, something we saw coming as we detailed their seemingly constant sales of SOA. We had also seen Falcone's previous sales in CPN as well, so that wasn't surprising to see. It was interesting to see the hedge fund shed a good portion of their FCX position as they hadn't held it very long. Overall, Harbinger increased exposure to basic materials and sharply decreased exposure to Utilities.

All data used for this article comes from Alphaclone, our source for backtesting strategies and sorting through all the hedge fund portfolio maneuvers with ease. Assets reported on the 13F filing were $1.78 billion this quarter compared to $1.48 billion last quarter, a 20% increase. Remember that these filings are not representative of the hedge fund's entire base of AUM.

We'll be tracking 40+ prominent funds in our fourth quarter 2009 hedge fund portfolio tracking series. We've already covered Seth Klarman's Baupost Group, Mohnish Pabrai's Investment Fund, Carl Icahn's hedge fund Icahn Partners, David Einhorn's Greenlight Capital, Stephen Mandel's Lone Pine Capital, John Griffin's Blue Ridge Capital, David Tepper's Appaloosa Management, Warren Buffett's portfolio, John Paulson's hedge fund Paulson & Co, Lee Ainslie's Maverick Capital, Dan Loeb's Third Point, Eddie Lampert's RBS Partners, David Ott's Viking Global, Chris Shumway's hedge fund Shumway Capital Partners, and Chase Coleman's Tiger Global. Check back daily for our new updates.