4 Stocks That Burned Billionaires In Q2

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Canadian Pacific Railway Limited (USA) (NYSE:CP) is another stock that burned billionaires in the second quarter. The rail carrier company sported seven billionaire fund investors with aggregate holdings of $5.4 billion. The stock hasn’t had a good run this year, falling by well over 16% since the beginning of the year, and over 12% during the second quarter. With no foreseeable turnaround, the stock might just register its first full year fall since 2008. Over the past five years, the stock has been performing well, but things have changed now that the crude-by-rail business has been stifled by new regulations and slowing growth. Canadian Pacific Railway Limited (USA) (NYSE:CP) last issued its quarterly earnings on April 21, posting earnings per share of $2.26, surpassing the Thomson Reuters consensus estimate of $2.19. Its revenue of $1.67 billion met analysts’ expectations. During the same quarter last year, the company posted earnings per share of $1.44 on revenue of $1.51 billion, showing the company had solid growth year-over-year. However, the stock has been going down due to bad press over the Lac-Megantic rail disaster victims’ compensation and general industry slowdown. A few of the billionaire hedge funds that held shares of the company were Bill Ackman‘s Pershing Square with 13.94 million shares, Andreas Halvorsen’s Viking Global with 6.19 million shares, and Daniel S. Och’s OZ Management.

The lethargic performance of Hertz Global Holdings Inc (NYSE:HTZ) in the second quarter was a big disappointment to investors, as it slid by over 16%. Hertz Global Holdings Inc was among the stocks that surprised analysts in its most recent earnings report, and not in a positive way, as it posted a negative surprise factor of 18.75%. The company’s performance has been adversely affected by its financial reporting troubles, having to restate its reports dating back to 2011. Hertz Global Holdings Inc (NYSE:HTZ) even received a warning from the New York Stock Exchange regarding the same. The company has had to take a number of measures to improve its performance, some of which include closing down some of its locations and increasing prices. The number of billionaire investors in the stock at the end of the first quarter stood at eight, with their positions in the stock amounting to $3.7 billion. The biggest shareholder out of the more than 700 hedge funds that we track was billionaire Carl Icahn with 51.92 million shares, followed by billionaire Barry Rosenstein with 41.78 million shares. Billionaire Larry Robbins came in third with 22.53 million shares.

Disclosure: None

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