Billionaire Leon Cooperman Thinks Freeport-McMoRan Has It Right

Page 1 of 2

OMEGA ADVISORSFreeport-McMoRan Copper & Gold Inc. (NYSE:FCX) took a punishing hit in the market in early December. At that time the company announced that it would be acquiring Mcmoran Exploration Co (NYSE:MMR), a company which had split from the larger Freeport-McMoRan organization some time ago, and Plains Exploration & Production Company (NYSE:PXP) at high premiums to where those stocks were currently trading. This made Freeport-McMoRan, a copper and gold producer which traders had often used as a global growth barometer, a significant oil producer as well. Between the general finding that M&A tends to destroy shareholder value, the reduced focus of the business, and the high transaction price, shareholders were not happy with the company’s decision. Read our initial coverage of the deal. We’d also note that Plains had previously bought a number of BP plc (NYSE:BP)’s offshore Gulf of Mexico assets, at what at the time had been considered generous prices.

Shortly after the deal, we noticed that billionaire Leon Cooperman’s Omega Advisors had bought shares in Mcmoran Exploration; we’d attributed that entirely to a merger arbitrage play. However, the hedge fund manager apparently thinks that the combined company is going to be a value opportunity as well. According to an interview on CNBC, Cooperman actually thought that the acquisition was a good thing for Freeport-McMoRan; as a result, the decline in the stock price since the announcement has made it even more attractive.

Omega has been buying the stock, after not reporting a position in its 13F filing for the third quarter of 2012 (see Cooperman’s stock picks). Billionaires George Soros and Israel Englander had thought it was a good time to buy Freeport-McMoRan Copper & Gold Inc., increasing their own stakes in the company between July and September (find more stock picks from George Soros and from Englander’s Millennium Management). Point State Capital, a hedge fund managed by Sean Cullinan and other former employees of billionaire Stanley Druckenmiller’s Duquesne Capital, was the largest holder of the stock in our database of 13F filings with a position of 2.9 million shares.

Does it make sense to join Cooperman in Freeport-McMoRan?

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

The 10 Best-Selling Cars in 2014

The 10 Best Industries to Invest In

The 10 Most Expensive States to Own a Car In

Top 10 Business Schools in US: 2014 Rankings

Top 20 Female Billionaires in 2014

6 Movies That You Should Watch to Better Understand The Cold War

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

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!