Billionaire Ken Griffin Bought Fairchild Semiconductor

Page 1 of 2

CITADEL INVESTMENT GROUPAt the beginning of October, billionaire Ken Griffin’s Citadel Investment Group owned 3.3 million shares of Fairchild Semiconductor International (NYSE:FCS), a $1.9 billion market cap designer and manufacturer of integrated circuit products. This was over five times what the large hedge fund had owned three months earlier, suggesting that Griffin and his investment team were bullish on the stock. See the rest of Griffin’s stock picks. That position has since increased to 5.8 million shares, according to a recent filing with the SEC.

In the third quarter of the year, Fairchild experienced an 11% decline in revenue compared to the same period in 2011, roughly in line with its performance in the first half of 2012. Lower sales occurred in all three major segments of the company’s business. With gross margins declining, and operating expenses down only slightly, net income dropped 31%. Cash flow from operations has been cut in half for the first nine months of 2012 compared to the same period a year ago as well.

The stock hasn’t reacted much to the company’s recent poor performance, and as a result Fairchild Semiconductor International trades at 31 times trailing earnings. Analyst consensus is that the business will improve in 2013, and so the forward P/E falls to 19, but we’d be wary of relying too heavily on the company’s results matching these forecasts- they seem optimistic, and depend on the business not just halting but in fact reversing its recent decline. We’d also note that at least statistically Fairchild is quite exposed to the broader economy, with a beta of 2.4.

Citadel wasn’t the only billionaire active in the stock last quarter, though we can’t be sure of what other funds have done since then. Fellow billionaire Ken Fisher’s Fisher Asset Management had reported a position of 5.4 million shares of Fairchild Semiconductor International at the end of the third quarter (check out Fisher’s favorite stocks). Royce & Associates, a fund managed by Chuck Royce that tends to focus on small- and mid-cap stocks, owned a little over 14 million shares (find more stocks Royce 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. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

Picture Perfect: The 6 Smartphones with the Best Cameras

The 10 Best Countries To Work In the World

A Profitable Day At The Track: 5 Tips For Betting On Horses

Tearing You Apart: 6 Bad Habits That Ruin Relationships

Learning on the Job: The 6 Biggest Mistakes Parents Make

Shopaholics Rejoice: The 12 Biggest Malls in the World

Fright Night: 10 Horror Movies Based on True Stories

Mach Mania: The 10 Fastest Jets in the World

Military Heavyweights: The 10 Countries with the Most Tanks

All In: The 7 Richest Poker Players in the World

Abracadabra: The 10 Best Magicians in the World

The 10 Richest Asian Countries in the World in 2014

Eyes in the Sky: 10 Things You Need to Know About Drones

Rising Stars: The 6 Best Silicon Valley Startups

Military Muscle: The 5 Most Advanced Armies in South America

All that Glitters: The 7 Most Luxurious Jewelry Brands in the World

5 Things You Didn’t Know About ISIS but Should

Empowering Your Money: The 5 Best Energy Stocks to Invest In

The 11 Best Android Apps You Can’t Get on iOS

The 10 Most Important International Conflicts in 2014

Mood Enhancers: The 20 Most Uplifting Songs of all Time

Lover Beware: The 8 Countries that Cheat the Most

Breath of Fresh Air: The 25 Countries with the Best Air Quality on the Planet

Singles Beware: The 8 Worst Mistakes Made on First Dates

Healthy and Happy: The 10 Countries with Lowest Healthcare Costs

The 6 Best Company Team Building Activities to Build Workplace Camaraderie

Ships Ahoy: The 10 Busiest Shipping Ports in the World

10 Productivity Tips to Save You Time and Help You Do More With Less

Grab a Bite: The Most Popular Fast Food Restaurants in America

Friday Night Thirst: The 10 Most Popular Cocktails in the World

The 6 Greatest Unsolved Mysteries We May Never Figure Out

7 Useless Products You Never Should’ve Bought

The 5 Reasons Why You’re Single and Miserable

The 7 Most Addictive Foods in the World We Can’t Stop Eating (Even Though We Should)

5 Amazing Places You Can Swim with Dolphins

The Top 7 Most Livable Countries In The World

The 10 Most Expensive Baseball Cards Ever Pulled From A Pack

The 5 Easiest Second Languages to Learn for English Speakers

Silver Spoon: The 6 Richest Families in the World

The 20 Countries with the Largest Prison Populations in the World

The Top 10 Richest Actors in the World

The 10 Best Airline Stocks to Invest In Before They Fly Too High

Burger Kings: The 10 Most Expensive Burgers in the World

The 10 Most Ethnically Diverse Countries in the World

The 10 Most Exclusive Credit Cards in the World

The 10 Most Expensive Cruise Ships in the World

The 10 Fastest Supercomputers in the World

The 10 Best Countries for Doing Business 2015

6 Most Expensive Fruits In The World

10 Worst Airlines in the World

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!