Avis Budget Group Inc. (CAR), Cheniere Energy, Inc. (LNG), Actavis plc (ACT): Falcon Edge Capital’s Diversified Stock Picks

Falcon Edge Capital, a hedge fund founded –in 2012- and managed by Richard Gerson and Navroz D. Udwadia, holds an equity portfolio valued at more than $1.5 billion. Although it is quite diversified, its focus is put on services stocks (35%), technology (18%), healthcare (14%) and basic materials (13%). Over the last reported quarter –Q1 2014, the fund declared having started 10 new stock positions, sold out of 7, and added to 6 of its preexisting ones. In this article I will take a look at its largest long equity positions in order to find out if they are worthy of your consideration.

Same as in the previous quarter, and in spite of a 6% reduction in Falcon Edge’s stake in the company, Avis Budget Group Inc. (NASDAQ:CAR) is the fund’s most valuable long equity position. The firm owns 2.667 million shares of this $6.2 billion market cap car and truck rentals and ancillary services provider. The position in Avis Budget Group Inc. (NASDAQ:CAR), worth almost $130 million –according to the last 13F filing, accounts for more than 8% of the fund’s total equity portfolio’s value.

In addition to Mr. Gerson and Mr. Udwadia, more than 50 major hedge funds are long on Avis Budget Group Inc. (NASDAQ:CAR). The largest hedge fund shareholder is, in fact, John Griffin’s Blue Ridge Capital, a fund at which Mr. Gerson was a founding member. Blue Ridge owns 6.65 million shares of the company, valued at approximately $323 million.

Cheniere Energy, Inc. (NYSEAMEX:LNG)

Cheniere Energy, Inc. (NYSEMKT:LNG) is second in this list. Although Falcon Edge’s position remained unchanged over the first quarter of 2014, it inched in value, escalating from the fourth to the second-runner-up place. Cheniere Energy, Inc. (NYSEMKT:LNG) is a $16.4 billion market cap, liquid natural gas pipeline company and it enjoys of plenty of hedge fund support. In addition to Falcon Edge’s position (2.11 million shares, worth about $116 million), Michael Lowenstein’s Kenisco Capital owns 8.08 million shares of Cheniere Energy, Inc. (NYSEMKT:LNG), and Eric W. Mandelblatt’s Soroban Capital Partners, 7.79 million shares, after having increased its stake by 74% over Q1.

The third spot is occupied by, Actavis plc (NYSE:ACT), a newcomer at Falcon Edge’s equity portfolio. Over Q1, the fund started a position with 457,000 shares at Actavis plc (NYSE:ACT), a $38.9 billion market cap drug manufacturer. This position, worth more than $94 million, accounts for more than 6% of the fund’s equity portfolio.

Other hedge funds have also bought into Actavis plc (NYSE:ACT) recently. Dan Loeb’s Third Point last disclosed having acquired 2.5 million shares, and Stephen Mandel’s Lone Pine Capital, 2.378 million shares. Once again, John Griffin’s Blue Ridge Capital can be counted amongst the company’s main hedge fund investors.

 

Disclosure: Javier Hasse holds no position in any stocks mentioned.

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

50 Crazy Facts About Japan You Won’t Believe

Top 10 Least Expensive Hybrid Cars to Save the Planet With

The 10 Biggest ‘Gate’ Controversies in History

The 10 States with the Highest Nursing Shortages Leaving Their Hospitals Depleted

The 10 Best Value Investment Blogs that Every Investor Must Read

The 6 Cheapest Boarding Schools in Europe 2015

The 5 Most Expensive Cars To Insure in the World

The 10 Most Common Genetically Modified Foods

10 Self-Made Billionaires Who Came From Nothing

The 10 Most Expensive Cities to Live in North America

The 13 Most Expensive Headphones in the World to Represent

The Top 20 Wealthiest Soccer Teams in 2014

4 BuzzWorthy Cannabis Stocks And Some Smoking Derivative Plays

The 10 Healthiest Fast Food Chains in America to Dine At

The 5 Most Expensive Cat Food Brands You Can Spoil Your Kitty With

The 6 Best eCommerce Platforms for Small Businesses

The 10 Worst Mistakes an Entrepreneur Can Make

The 5 Most OP Characters in League of Legends to Carry Games and Crush Foes With

The 5 Best Foods to Eat Before Running that Will Help You Pound the Pavement

10 Glaring Plot Holes in The Walking Dead that a Zombie-Filled Bus Could Drive Through

The 5 Biggest Celebrity Stoners Who Love Their Reefer

The 10 Most Overrated Movies Of All Time by Out-of-Touch Critics

Top 6 Least Expensive Cruise Destinations For 2015 that Will Take You to Paradise

10 States with Lowest Substance Abuse Rates in America

The 14 Most Watched TV Finales Ever

The 10 Best Selling Role Playing Games of All Time for PC

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

Top 6 Cities For The Ultra Rich to Live in Comfort

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

How to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!