Jeffrey Tannenbaum, the manager of Fir Tree, is a big fan of tech and energy companies, at least that’s what the fund’s latest 13F filing suggests. Energy stocks account for approximately a quarter of the fund’s equity portfolio, while tech stocks come in second with 23%. Not far behind are financial companies, which occupy about 18% of Fir Tree’s portfolio. The fund was established in 1994 and is focused on investments in public equity markets and in commercial and residential real estate. Tannenbaum also invests in distressed companies and has a good eye for companies that go through bankruptcies. As of June 30, 2014, Fir Tree’s equity portfolio carries an estimated value of $9.22 billion, up from the $8.92 billion reported at the end of the first quarter of this year. In this article, the fund’s top three new additions will be analyzed, since its top positions have not changed much.
The biggest new bet made by Tannenbaum is eBay Inc (NASDAQ:EBAY), the operator of the famous e-commerce platform. During the second quarter of 2014, Tannenbaum and Fir Tree have built a position that amasses approximately 7.64 million shares and which has an estimated value of $382 million. Carl Icahn, the notorious activist investor, is also a big fan of eBay Inc (NASDAQ:EBAY) and, together with his fund, Icahn Capital LP, holds approximately 30.8 million shares of eBay Inc (NASDAQ:EBAY) worth in excess of $1.54 billion.
Another significant addition to the equity portfolio of Fir Tree is Santander Consumer USA Holdings Inc (NYSE:SC), a specialized consumer finance company. In its latest 13F filing, Fir Tree has reported ownership of exactly 10 million shares of Santander Consumer USA Holdings Inc (NYSE:SC), which carry a value of $194 million. No other hedge fund that we track has reported an investment in Santander Consumer USA Holdings Inc (NYSE:SC).
Tannenbaum is also optimistic about the prospects of Valero Energy Corporation (NYSE:VLO), an independent petroleum refining and marketing company. During the first quarter, he has built a position in Valero Energy Corporation (NYSE:VLO) that contains approximately 3.1 million shares, which are worth a little over $155 million. David E. Shaw is also bullish on Valero Energy Corporation (NYSE:VLO), having increased his fund’s stake in the company by 34% during the same period of time. As of June 30, D E Shaw holds about 10.5 million shares worth in excess of $524 million.