Billionaire Jacob Rothschild’s RIT Capital Three New Picks & Two Stocks It Dumped

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The Coca-Cola Co (NYSE:KO) kicks off the list of additions, with RIT Capital having amassed 412,000 shares by the end of the first quarter. According to its latest 13F filing, the position is worth approximately $19.1 million. Billionaire Stanley Druckenmiller is also very optimistic about the prospects of The Coca-Cola Co (NYSE:KO) as his family office, Duquesne Capital, revealed a fresh position at the end of the quarter that amounts to 1.39 million shares valued at $64.4 million. Hurt by currency headwinds and a slump in economic activity in Europe, The Coca-Cola Co (NYSE:KO) is flirting with the idea of merging of its European businesses into a single company. European operations have generated sales of $12 billion in 2015 and a profit of roughly $700 million. If combined into one single entity, the new company could reduce total operating expenses by $350 million to $375 million over the next three years. Shareholders are set to vote on the proposal on May 24.

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Bullish On Medical Device Manufacturer

A solid performer so far this year, Baxter International Inc (NYSE:BAX) has also found its way on RIT Capital’s shopping list. Valued at $7.89 million, the fund’s stake amounted to 192,000 shares at the end of March. A leading medical devices manufacturer, Baxter International managed to beat analysts’ expectations for three consecutive quarters. The latest earnings report showed a 1.1% decline in revenues to $2.37 billion, but earnings of $0.36 per share were miles ahead of analysts’ projections. The report also signals a revival in the company’s hospitals segment, which accounts for 62% of revenue, and suggests the we can expect more surprises in the coming quarterly reports. Dan Loeb, the manager of Third Point, is also very bullish on Baxter International Inc (NYSE:BAX), having established a new position for his fund in the first quarter. According to its latest 13F filing, the fund holds 53.8 million shares valued at $2.21 billion.

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Keep An Eye On This Baby Food Producer

RIT Capital management team has also initiated a minor stake in Mead Johnson Nutrition CO (NYSE:MJN), a pediatric nutrition company. According to its latest 13F filing, RIT Capital holds exactly 10,000 shares worth in the region of $850,000. Dmitry Balyasny also sees some upside potential and has initiated a stake in Mead Johnson Nutrition CO (NYSE:MJN) for his fund, Balyasny Asset Management, which reportedly holds 830,514 shares worth $70.5 million. The company has a market cap of $15.4 billion and pays an annual dividend of $1.65 per share, a modest 2% yield. Mead Johnson Nutrition CO (NYSE:MJN) shares are currently trading at a trailing P/E ratio of 31, which is higher than the forward P/E of 22 as reported by Yahoo! Finance. This relationship between the two ratios suggests that investors expect the company’s earnings to improve significantly in the next 18 months. Susquehanna has recently reiterated its ‘Hold’ rating on the stock and its price target of $82 per share.

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Disclosure: None

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