Bain Capital’s Hedge Fund Likes Dollar General and More

Page 1 of 2

Bain Capital is best known as a private equity fund engaging in leveraged buyouts, but its success has allowed it to develop other investment funds including long/short equities fund Brookside Capital. Brookside filed its quarterly 13F in the middle of February; we like to analyze 13Fs both in pursuit of investment strategies (for example, we have found that the most popular small cap stocks among hedge funds earn an average excess return of 18 percentage points per year) and to see which stocks individual hedge funds like. Read on for our quick take on the five largest holdings by market value in Brookside’s portfolio as of the end of December or see the full list of stocks the fund reported owning.

Brookside’s largest position was its 4.9 million shares of Express Scripts Holding Company (NASDAQ:ESRX), representing a large increase in shares from three months earlier. 73 other funds and other investors in our database of 13F filings owned Express Scripts, making the pharmacy benefit services company one of the most popular healthcare stocks among hedge funds (find more healthcare stocks hedge funds love). Express Scripts trades at 12 times forward earnings estimates, as it is expected to continue to recover from its conflict with Walgreen Company (NYSE:WAG); current growth rates are temporarily very high as a result of that factor.

Earnings Analysis: Dollar General Corp. (NYSE:DG)Dollar General Corp. (NYSE:DG) was another of Brookside’s top picks, as the fund’s stake increased by 225 to a total of 5.3 million shares. The dollar store’s beta is only 0.1, signifying even less sensitivity to the broader economy than discount retailer such as Wal-Mart Stores, Inc. (NYSE:WMT). Dollar General’s trailing earnings multiple is 17, which is not that wide a premium over Walmart’s trailing P/E of 14, and revenue and earnings growth have been quite good at the dollar store. Billionaire Stephen Mandel’s Lone Pine Capital was also buying Dollar General last quarter (check out Mandel’s stock picks).

Here are three more stocks Brookside owned:

Page 1 of 2
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

Top 15 Best Paying Jobs for Women in 2014

Top 6 Things Rich People Do Differently Every Day

5 Retirement Mistakes To Avoid (and Einstein’s Famous Quote)

11 Smartest People in the World

6 Films About the Financial World You Need To Watch (While “The Wolf” is Not Around)

Warren Buffett and Billionaires Are Crazy About These 7 Stocks

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top 6 Tax Scams and How to Protect Yourself

Top Businesses to Invest In

Top 5 Things You Might Be Doing Wrong With Your Business

Top 5 Strategic Technology Trends in 2014

Top Rags to Riches Stories

Parenting Behavior That Promotes Future Leaders

Top 5 Mistakes Made by Small Businesses

Top 5 Most Common and Potentially Devastating Financial Blunders

Top 5 Highest Paying Jobs for Web Designers

Top 6 Most Respected Professions that Also Pay Well

Top 5 Pitfalls Investors Should Avoid

Top 6 Lawyers and Policy Makers Under 30

Top 6 New Year’s Resolutions for Entrepreneurs

Top 7 Locations to Check in on Facebook

Top 5 Mistakes made by Rookie eBay Sellers

Top 7 eBook Publishers in 2013

Top 6 Health Industry Trends in 2014

5 Lessons for Entrepreneurs from Seth Godin

Top 5 Success Tips from Jordan Belfort – the Wolf of Wall Street

Best Master’s in Finance Degree Programs

Top 6 Earning Celebrities Over 50

The most expensive sports to play

Top 7 Earning Celebrities Under 25

Best 7 Online Courses to Take: Free Finance MOOCs

Top 6 Bad Habits that Promote Failure

20 Most Valuable Soccer Teams in the World in 2013

12 Most Expensive Countries for Foreign Students

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!