American Express Company (AXP), Discover Financial Services (DFS): What’s This Mega-Investor Buying?

The next new addition is Coca Cola Enterprises Inc. (NYSE:CCE) the entity which markets The Coca-Cola Company (NYSE:KO) beverages, not to be confused with Coca-Cola Bottling Co. Consolidated (NASDAQ:COKE) which bottles the products.  Having said that, Samlyn bought 1.6 million shares of Coca Cola Enterprises Inc. (NYSE:CCE) during the fourth quarter of 2012 for a market value of $51 million.  Although Coca Cola Enterprises Inc. (NYSE:CCE) continually faces competition from PepsiCo, Inc. (NYSE:PEP) in the carbonated beverage market, The Coca-Cola Company (NYSE:KO) Enterprises’s extensive market reach and global brand recognition makes it the leader in the consumer goods sector. Recently, however, The Coca-Cola Company (NYSE:KO) Enterprises reported very disappointing earnings.  Revenues shrunk 3% and net income was down 10%.  As a result, 4Q earnings fell to $0.45 per share from $0.71 per share for the third quarter of 2012.

Rounding out the list at number five is Discover Financial Services (NYSE:DFS). Pohly bought 1.2 million shares of Discover Financial Services (NYSE:DFS) for a market value of $46.5 million.  Like American Express, Discover Financial Services (NYSE:DFS) is the only other “closed-loop” credit card, a term used to describe cards that can only be used in certain stores.  The company reported strong earnings for the 4Q of 2012 and has a very favorable price/earnings ratio of 9.7x versus the industry average of 29.2x. Recently, analysts upped the price target for DFS stock to $50.00 from $48.00. Shares recently reached a high of $45.38 and are up 10% for the year.

These new and diverse additions to Samlyn’s equity portfolio are the proverbial cherries on top of the other 37 positions within the portfolio. They represent all of the major sectors, including: consumer goods, healthcare and financial.  To see the new positions and the rest of the Samlyn portfolio, check it out here, on Insider Monkey.

Disclosure: none