Declining Hedge Fund Ownership Warned of Losses in Tribune Media Co (TRCO), Coty Inc (COTY)

MSDC reported ownership of 2.68 million shares of Coty Inc (NYSE:COTY) as of the end of the third quarter, unchanged quarter-over-quarter. The net worth of the stake was about $62.88 million at the end of September. The stock lost 8.7% during the third quarter, ranking as one of the fund’s few losers. At Q2’s end, a total of 13 of the hedge funds in our system held long positions in Coty, a plunge of 41% from the first quarter of 2016, which was a huge warning sign. Shares have lost over 25% of their value since the end of that quarter in which hedge funds bailed on the stock, which is why monitoring aggregate hedge fund activity can provide great insight. Balyasny Asset Management, Thunderbird Partners, and Citadel Investment Group were some of the funds that stuck with the stock, owning shares of it as of the end of June.

MSDC Management made no change to its position in Tribune Media Co (NYSE:TRCO) in the third quarter, heading into the fourth quarter with a $32.52 million stake in the company, which consisted of 829,994 shares. The stock also had a rough third quarter, losing 6.2% of its value. Tribune Media Co (NYSE:TRCO) was in 23 hedge funds’ portfolios at the end of the second quarter of 2016 among those we track, down by 4% from a quarter earlier. According to Insider Monkey’s hedge fund database, Howard Marks’ Oaktree Capital Management has the largest position in Tribune Media Co (NYSE:TRCO), worth close to $555.5 million, comprising 10% of its total 13F portfolio. Coming in second is Angelo Gordon & Co, managed by John M. Angelo and Michael L. Gordon, which holds a $248.7 million position. Other peers with similar optimism contain Mason Hawkins’ Southeastern Asset Management, Leon Cooperman’s Omega Advisors, and Steven Tananbaum’s GoldenTree Asset Management.

Disclosure: None