Billionaire Steve Cohen Tops Warren Buffett In Starz (STRZA)

Page 1 of 2

SAC CAPITAL ADVISORSBillionaire investor and founder of SAC Capital, Steve Cohen, has topped fellow billionaire Warren Buffett as one of Starz (NASDAQ:STRZA) ‘s biggest fund owners. Cohen has disclosed a 2,000% increase from the number of Starz shares he owned at the end of the third quarter, going from only owning 286,927 to over 6.3 million shares, or 5.7% of the company. At the end of the third quarter Buffett only owned 5.5 million (check out Cohen’s profile and holdings here).

Earlier this year billionaire Ken Griffin of Citadel Investment Group joined Steve Cohen as an investor in TiVo, and now the two have another TV-related stock in common, Starz. Both stocks have been speculated at potential takeover targets (read more about Cohen and Griffin’s TiVo investment)

Of the premium content providers, there is Starz, HBO — owned by Time Warner Cable Inc (NYSE:TWC) and Showtime — owned by CBS Corporation (NYSE:CBS), both of which could be potential buyers of the newly spun-off Starz. Another potential suitor could be Comcast Corporation (NASDAQ:CMCSA) . The Comcast-NBC giant could use Starz to add a premium network to its portfolio. The takeover is especially compelling when you look at how the enterprise value of how the other companies stack up to Starz:

$ in billions Starz CBS Time Warner Comcast
Enterprise Value $1.69 $25.38 $49.14 $85.53
Earlier this year Liberty Media Corp (NASDAQ:LMCAD) spun-off Starz, and since then Starz has traded relatively flat, up around 2.2%. The premise behind the spin-off was to relieve the pressure on Starz’s valuation multiples, where Liberty believed that the Starz segment was being unfairly discounted by being held under the Liberty Media umbrella (read more about whether Starz is a good buy).

Things have not panned out as planned so far, and multiple pressure still exists, where Starz still trades at a hefty discount to peers:

Starz CBS Time Warner Comcast
Price to Earnings 1.2 18.1 19.1 17.4
Price to Sales 0.7 1.8 1.6 1.7
Crowded is good. SAC Capital is not the only hedge betting on Starz, one of the top performing funds in 2012 has over 15% of its 13F portfolio invested in the company (read more about the hedge fund). Cohen’s investment in Cohen also comes only days after Gates Capital announced a 5.9 million stake in the company. Worth noting is that billionaire John Malone, Chairman of Liberty Media, owns 11.2 million shares per a January 13D filing. Other top hedge funds owning Starz includes Jana Partners, D.E. Shaw and David Einhorn of Greenlight Capital (check out details on Greenlight’s partner letter). Although a crowd can generally be a bad thing, that is not the case with Starz. I believe the more the merrier, as these hedge funds and billionaire investors will strive to unlock the most shareholder value for investors, including the possibility of an acquisition (check out all the hedge funds owning Starz).
Page 1 of 2

Biotech Insider Alert - $6 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Click here to Read Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 74 percentage points in 2.5 years. Our beta is only 1.2 (download a FREE newsletter and see the details inside)

Lists

Best Selling Magazines in the World

Shortest People in History

The Most Celebrated Holidays in the World

Most Expensive Handbag Brands in the World

Top Selling Comic Book Issues of this Century

The Most Powerful Women in Politics

Best Paid DJs

Most Rebellious Female Artists

Best Paid TV Actresses of 2014

Best Paid Actors of 2014

Most Expensive Horses in the World

Tallest People Ever

Most Encouraging Feminist Celebrities

Best Paid Supermodels of 2014

Top 10 Suburbs for Retirement in 2015

10 Wealthiest Cities in America

Top 10 TED Talks for Entrepreneurs

Best TED Talks on Education

25 Most Dangerous Places to Live in America

Top 10 Ski Resorts in the United States – 2014 List

Top 10 Most Remote Places in the World

Most Visited Museums in the United States

Wealthiest Photographers in the World

Most Famous Gay Athletes

The World’s Most Famous Circuses

Best Hair Stylists

Most Popular NASCAR Drivers

The Best Romance Movies of all Time

The Most Wanted Drug Lords

The Oldest Money Managers

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

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 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!