Billionaire David Abrams Betting Big On Small-caps

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Just like Opus Bank (NASDAQ:OPB), Abrams Capital also didn’t made any changes to its stake in InterXion Holding NV (NYSE:INXN) during the second quarter. As of June 30, the fund continued to own over 2.34 million shares of the company worth almost $65 million. After a huge spike in early February following London-based TelecityGroup’s announcement that it would be acquiring InterXion Holding NV (NYSE:INXN) in a $2.2 billion deal, shares of the company have seen a consistent downtrend since May 29, when TelecityGroup announced that it was terminating the all-stock deal because it was getting acquired by Equinix Inc (NASDAQ:EQIX). On July 31, analysts at KeyBanc reiterated their ‘Overweight’ rating on InterXion Holding NV (NYSE:INXN) and upped their price target to $323 from $295, which represents a 23.75% upside to the stock’s current price. Clint Carlson‘s Carlson Capital initiated a stake in InterXion Holding NV (NYSE:INXN) during the second quarter by purchasing 492,153 shares of the company.

Wendys Co (NASDAQ:WEN) represented Abrams Capital’s fourth-largest small-cap holding on June 30. The fund added Wendys Co (NASDAQ:WEN) to its portfolio during the second quarter, purchasing 4.25 million shares, which were valued at almost $48 million as of June 30. After spiking by over 20% during the first two months of the year and remaining range-bound throughout the second quarter, shares of the restaurant chain have nosedived and are trading flat for the year. On July 27 it was reported that the company is testing antibiotics-free chicken products. Wendys Co (NASDAQ:WEN) reported slight beats with its second quarter earnings announced on August 5. EPS for the quarter came in at $0.09 on revenue of $489.5 million, compared to analysts’ estimates of EPS of $0.08 on revenue of $488.69 million. Analysts at Credit Suisse upgraded the stock to ‘Neutral’ from ‘Underperform’ on August 11, but kept their price target at $10, representing potential upside of over 10%. Even after reducing its stake in the company by 17%, Nelson Peltz‘s Trian Partners remained  Wendys Co (NASDAQ:WEN)  largest shareholder at the end of June among the hedge funds we cover. As of June 30, the fund owned slightly over 54 million shares of the company.

Disclosure: None

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