Billionaire James Dinan’s Top New Stock Picks For Q3

Diversified healthcare company Baxter International Inc (NYSE:BAX) represented York Capital’s third-largest equity holding at the end of June. The fund initiated its stake in the company by purchasing over 8.22 million shares of it during the second quarter, which were valued at $570.47 million as of June 30. Baxter International Inc (NYSE:BAX) completed the spinoff of its bleeding disorder drug business into a separate publicly-traded company, Baxalta Inc (NYSE:BXLT), on July 1. Baxter International Inc (NYSE:BAX) reported an earnings and revenue beat for the second quarter on July 29. EPS for the quarter came in at $1.00 on revenue of $3.90 billion, compared to analyst estimates of
EPS of $0.94 on revenue of $2.40 billion. Having disclosed initiating a stake in Baxter International Inc (NYSE:BAX) by purchasing 3.95 million shares of the company during the second quarter, billionaire Dan Loeb’s Third Point issued an amended 13D filing on August 7 in which it reported owning 52.50 million shares or 9.6% of the outstanding shares of the company. Third Point’s stake in the company is activist in nature, with the fund seeking to get two seats on the company’s Board and make changes to its leadership.

Williams Companies Inc (NYSE:WMB) was York Capital Management’s third top new stock pick for the quarter The fund bought 5.76 million shares of the company during the quarter, which were worth slightly above $330.58 million as of June 30. In June, the Oklahoma-based energy infrastructure company rejected Energy Transfer Equity LP (NYSE:ETE)’s $53 billion buyout offer, following which it announced that it will open itself up to strategic alternatives such as a merger, sale, or the acquisition of the rest of its MLP, Williams Partners LP (NYSE:WPZ). On August 12, analysts at Argus reiterated their ‘Buy’ rating on the stock, while reducing their price target to $49.98 from $63 , nearly the same levels where the stock currently trades at. Among the hedge funds we cover in our database, Keith Meister‘s Corvex Capital was the largest shareholder of the company, owning over 41.68 million shares at the end of June.

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