Brahman Capital Owns 5.7% of Endo Health Solutions Inc (ENDP)

Page 1 of 2

A 13G filed with the SEC has disclosed that Brahman Capital, a hedge fund managed by Peter Hochfelder and his team, owns 6.3 million shares of Endo Health Solutions Inc (NASDAQ:ENDP), a $4.3 billion market cap pharmaceutical company. We track quarterly 13F filings from hedge funds such as Brahman as part of our work researching investment strategies (we have found, for example, that the most popular small cap stocks among hedge funds outperform the S&P 500 by an average of 18 percentage points per year) and so we can see that this position is more than double the 2.7 million shares that the fund had owned at the end of March; Brahman had only started buying shares earlier this year. See more of Brahman’s stock picks from the end of Q1. The fund’s stake in Endo has grown to 5.7%.

In Endo Health Solutions Inc (NASDAQ:ENDP)’s most recent 10-Q, the company reported a small increase in revenue compared to the first quarter of 2012. However, a number of costs- including R&D expenses- were cut over this time frame and so if we exclude special items such as litigation and asset impairment charges we get operating income of more than $140 million as opposed to an operating loss in last year’s Q1. Even including these special items as charges Endo Health Solutions Inc (NASDAQ:ENDP) turned a profit during the quarter. We would note, however, that a large increase in working capital caused cash flow from operations to be negative.

BLUE RIDGE CAPITAL

Analysts expect adjusted earnings per share to be $4.32 for this year, making for a current-year P/E multiple of 9. While that seems low, the sell-side (which for many companies is often accused of being too optimistic) expects EPS to decline considerably in 2014. Their projections make for a forward earnings multiples of 10, and for the stock to be a value play it would likely have to keep its business constant from that point forward. In May, we had noticed Tiger Cub John Griffin’s Blue Ridge Capital reporting a position of 6.6 million shares in Endo Health Solutions Inc (NASDAQ:ENDP) itself, giving that hedge fund close to 6% ownership as well (find Griffin’s favorite stocks). 12% of the float is held short.

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

On the Move: The 10 Fastest Growing Businesses in 2015

Fast Money: The 10 Highest Paying Fast Food Restaurants

Mixing It Up: The 14 Best Music Mashups of 2014

Rito Pls Buff: The 10 Least Played Champions in LoL Season 4

10 Covers of Popular Songs that are Better than the Originals

Must See TV: The 9 Most Anticipated Shows of 2015

The 15 Biggest Box Office Bombs of All Time

10 Things The World Can’t Stand About Americans

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

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!