3 Stocks Hedge Funds Were Snapping Up During the Crash

In a new filing with the U.S. Securities and Exchange Commission, William B. Gray’s Orbis Investment Management Ltd disclosed ownership of 3.46 million shares of NOW Inc (NYSE:DNOW), a 3.23% stake in the company. In this article, we’ll dig into this filing, as well as the latest filings from Red Alder GP LLC and Woodford Investment Management.

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Orbis is a relatively large fund with offices in many big cities such as London, Hong Kong, and Sydney. Orbis Investment’s umbrella of funds utilizes a variety of strategies, but for the most part, they are long-term investors. The fund’s public equity portfolio was worth over $13 billion at the end of June, and mainly consisted of Technology, Services, and Basic Materials stocks.

Let’s get back to Orbis Investment’s filing on NOW Inc (NYSE:DNOW). The fund’s disclosed stake represents a massive decrease from the 9.84 million shares that it held at the end of June. Orbis initiated a position in NOW Inc during the second quarter of 2014, when the company went public after being spun-off from National-Oilwell Varco, Inc. (NYSE:NOV). At the end of last year, the fund disclosed increasing its position in the company to 10.72 million shares.

Texas-based NOW Inc (NYSE:DNOW) is engaged in the distribution of oil and gas products in the U.S, Canada, and other countries. It has a market cap of nearly $2.0 billion. The company’s shares are showing some improvement, increasing by nearly 9% during the last 30 days. However, the stock has still lost 32.88% year-to-date. Another investor that sees value in NOW Inc is First Eagle Investment Management, which holds 8.53 million shares of the company.

On the next page, you’ll learn about the stock in which Red Alder GP reported an ownership stake of over 5%.

In a separate filing, Red Alder GP revealed owning 1.65 million shares of Capital Senior Living Corporation (NYSE:CSU). The investor states in the filing that Capital Senior Living’s common stock, when purchased, was undervalued and represented an attractive investment opportunity. The stake represents 5.6% of the company’s outstanding shares.

Capital Senior Living Corporation (NYSE:CSU) operates residential communities in the United States for seniors and has a market cap of $670.5 million. Like NOW Inc, Capital Senior Living Corporation (NYSE:CSU)’s shares have increased by over 7% during the past 30 days, but have dropped by 10.11% year-to-date. For the second quarter, the company posted revenue of $101.6 million, representing an increase of 8.7% compared to the same quarter a year ago. It also reported a loss of $5.2 million for the period, down from a loss of $9.8 million in the same quarter last year. Another investor betting big on the company is Paul J. Isaac’s Arbiter Partners Capital Management, which holds 1.85 million shares.

Finally, let’s talk about Woodford Investment Management’s move in Prothena Corporation PLC (NASDAQ:PRTA). The investor, in a recent filing with the SEC, reported holding 6.30 million shares, equal to 20.1% of the company’s common stock. The stake represents an increase from the 6.20 million shares the fund previously held.

Ireland-based Prothena Corporation PLC (NASDAQ:PRTA) is a late-stage clinical biotechnology company focused on the discovery, development and commercialization of novel protein immunotherapy programs. The company’s stock has been performing extremely well, increasing by 116% year-to-date. In June, Prothena Corporation PLC (NASDAQ:PRTA) successfully dosed the first subject in a phase 1 single ascending dose study for PRX003, a monoclonal antibody for the potential treatment of psoriasis and other inflammatory diseases. Prothena Corporation swung to a loss of $18.3 million in the second quarter, compared to income of $1.3 million for the same quarter last year. Another large shareholder of the company is Jacob Gottlieb’s Visium Asset Management, which holds 996,887 shares as of June 30.

Disclosure: None