Top US hedge funds bet on Mor­gan Stan­ley and AIG

The Pak Banker - - BUSINESS -

Top U.S. hedge fund man­age­ment firms, in­clud­ing Dan Loeb's Third Point LLC, took new po­si­tions in Mor­gan Stan­ley (MS.N) dur­ing the fourth quar­ter, ahead of the bank's cost-cut­ting mea­sures and bond-man­age­ment reshuf­fling.

Third Point pur­chased 3 mil­lion shares, while Carl­son Cap­i­tal bought 2.2 mil­lion shares to own 2.3 mil­lion shares dur­ing the last three months of 2015, reg­u­la­tory fil­ings showed Fri­day and Tues­day. Adage Cap­i­tal added to its po­si­tion, buy­ing 1.6 mil­lion shares to own 4.5 mil­lion shares at the end of the quar­ter, SEC fil­ings showed.

So far this year, Mor­gan Stan­ley shares are down more than 27 per­cent. In Jan­uary, Mor­gan Stan­ley named Sam Kel­lie-Smith to head its fixed-in­come trad­ing unit as it seeks to turn around the strug­gling busi­ness. The bank said it was cut­ting 25 per­cent of its fixed in­come jobs be­cause in­creased regulation has made trad­ing bonds less prof­itable. Th­ese hedge-fund SEC dis­clo­sures are back­ward-look­ing and come out 45 days af­ter the end of each quar­ter. Still, the fil­ings of­fer a glimpse into what hedge fund man­agers saw as in­vest­ment op­por­tu­ni­ties.

The fil­ings do not dis­close short po­si­tions, or bets that a stock will fall. As a re­sult, the pub­lic fil­ings do not al­ways present a com­plete pic­ture of a man­age­ment firm's stock hold­ings. The fol­low­ing are some of the hot stocks and sec­tors in which hedge fund man­agers ei­ther took new po­si­tions or ex­ited ex­ist­ing stakes in the fourth quar­ter. Omega Ad­vi­sors in­creased its stake in the in­surer by 731,200 shares to 4.1 mil­lion shares. Jana Part­ners, the hedge fund founded by Barry Rosen­stein, bought 4.3 mil­lion shares with a mar­ket value of $263.6 mil­lion at the end of the quar­ter. So far this year, AIG shares are down 14.5 per­cent.

AIG has been fac­ing pres­sure from ac­tivist in­vestors Carl Ic­ahn and John Paulson since Oc­to­ber to split up, and last week nom­i­nated Paulson and an Ic­ahn rep­re­sen­ta­tive to serve on its board af­ter post­ing two straight quar­terly losses. Ic­ahn in­creased his stake in AIG in the fourth quar­ter to 42.2 mil­lion shares from 1.4 mil­lion shares.

Ac­tivist in­vestor Jeff Smith's Star­board Value nearly dou­bled its hold­ing in the health­care com­pany to 2.4 mil­lion shares. Hedge fund Vi­sium As­set Man­age­ment bought roughly 1 mil­lion shares to own 1.03 mil­lion shares. Fel­low ac­tivist in­vestor Jana Part­ners, how­ever, had a dif­fer­ent view, slash­ing its stake by half to own 5.7 mil­lion at the end of the quar­ter.

Far­al­lon Cap­i­tal Man­age­ment sold its 4.5 mil­lion stake in the on­line mar­ket­place. Mean­while, Third Point cut its stake by 5 mil­lion shares to 4 mil­lion shares. John Bur­bank's Pass­port Cap­i­tal, one of 2016's best per­form­ers, opened a new po­si­tion of 4.9 mil­lion shares in the in­dus­trial con­glom­er­ate.

Hu­ber Cap­i­tal trimmed its stake in the nutri­tion com­pany by sell­ing 96,800 shares to own 1.2 mil­lion shares now. Jana Part­ners ex­ited the car-rental com­pany, sell­ing 39.2 mil­lion shares. Omega Ad­vi­sors, over­seen by Leon Coop­er­man and Steven Ein­horn, sold its en­tire stake of 500,000 shares in the depart­ment store chain. Far­al­lon Cap­i­tal Man­age­ment took a new stake of 1.6 mil­lion shares in the maker of coffee-brew­ing ma­chines. Dis­tressed in­vestor Marc Lasry ex­ited the bond in­surer, sell­ing 75,000 shares.

Some ex­ist­ing in­vestors in candy and food maker Mon­delez, which has caught the at­ten­tion of ac­tivists Per­sh­ing Square Cap­i­tal and Trian Part­ners, raised their stakes, in­clud­ing Pass­port Cap­i­tal, which owned 1.2 mil­lion at the end of the quar­ter. Zweig-Dimenna As­so­ciates bought 187,900 ad­di­tional shares to own 394,650 shares. But Bos­ton-based Adage Cap­i­tal Part­ners cut its stake nearly in half, sell­ing 2.2 mil­lion shares to own 2.7 mil­lion at the end of the quar­ter.

Jana added a new stake of 9.2 mil­lion shares in the drug maker. Su­vretta Cap­i­tal added 1.9 mil­lion shares to own 2.5 mil­lion. Omega Ad­vi­sors cut its stake by 3.5 mln shares to 1.3 mil­lion shares. Seth Klar­man's Bau­post Group ex­ited the stock of the oil and gas ex­plo­ration com­pany, sell­ing 4.1 mil­lion shares. Sen­a­tor In­vest­ment Group ex­ited its 500,000share po­si­tion.

Ac­tivist in­vestor Star­board Value cut its stake in the pack­ag­ing com­pany by 26 per­cent to 4.5 mil­lion shares. Jana Part­ners took a new po­si­tion of 3.8 mil­lion shares in the en­ergy com­pany.Jet Cap­i­tal added a new po­si­tion, buy­ing 2.1 mil­lion shares of the In­ter­net com­pany, while Carl­son Cap­i­tal bought 2.9 mil­lion shares, also a new po­si­tion. Ya­hoo shares are down 18.7 per­cent year-to-date.

Serengeti took a new po­si­tion in the restau­rant com­pany, buy­ing 135,000 shares. Third Point slashed its stake by 11.5 mil­lion shares to just 75,300 shares. Jana Part­ners sold 3.9 mil­lion shares to exit the an­i­mal health com­pany, which was spun off by Pfizer.

Newspapers in English

Newspapers from Pakistan

© PressReader. All rights reserved.