Elan Corporation, plc (ADR) (ELN), Tibco Software Inc. (TIBX): What This 758% Gainer Has Been Buying

Page 1 of 2

Every quarter, many money managers have to disclose what they’ve bought and sold, via “13F” filings. Their latest moves can shine a bright light on smart stock picks.

Today, let’s look at investing giant Daniel Loeb, founder of the Third Point LLC hedge fund. Loeb is a well-known activist investor, famous for publicly airing his opinions about companies in which he invests and not mincing words when he’s displeased. Loeb was instrumental in pointing out discrepancies in former Yahoo! Inc. (NASDAQ:YHOO) CEO Scott Thompson’s biography, paving the way for Yahoo!’s new CEO, Marissa Mayer. Loeb made about $1 billion on his Yahoo! investment over just two years.

More recently, Loeb has looked to break up Sony Corporation (ADR) (NYSE:SNE), with Sony rejecting his plan early in August (and George Clooney weighing in against him, too). Sothebys (NYSE:BID) auction house is an even more recent target for Loeb.

what is a hedge fund

His activity bears watching because the guy seems to know a thing or two about investing. According to the folks at GuruFocus.com, over the 15 recent years ending in 2012, Loeb racked up a cumulative gain of 758%, compared with just 94% for the S&P 500.

The company’s reportable stock portfolio totaled $4.4 billion in value as of June 30, 2013.

Interesting developments
So what does Third Point’s latest quarterly 13F filing tell us? Here are a few interesting details:

The biggest new holdings are Elan Corporation, plc (ADR) (NYSE:ELN) and CF Industries Holdings, Inc. (NYSE:CF). Ireland-based biotech company Elan is being bought by Michigan-based drug company Perrigo Company (NASDAQ:PRGO) for $8.6 billion. One benefit for Perrigo will be headquartering the new company in Ireland, which will cut its tax rate from around 30% to around 17%. Elan had previously been pursued by Royalty Pharma, whose offers had been deemed too low. It has also been in the news as a stock that investors at the scandal-ridden hedge fund SAC Capital allegedly traded in, with insider information. Perrigo has been making savvy acquisitions and growing rapidly.

Fertilizer concern CF Industries Holdings, Inc. (NYSE:CF) looks attractive with its forward P/E ratio below 7. Like Potash and others, the nitrogen and phosphate specialist may be hurt if Brazil stops importing fertilizer, but that’s not likely to happen soon. Russia’s exit from a major potash cartel could also spell trouble, via falling prices. Meanwhile, some peers may be hurt by changes in India, but CF is better positioned there due to its product and sales mix. It has also been benefiting from low natural gas prices, as that’s used in nitrogen fertilizer. Rising nitrogen prices have helped, too.

Third Point reduced its stake in lots of companies, including International Paper Company (NYSE:IP) and Constellation Brands, Inc. (NYSE:STZ). Among holdings in which Third Point increased its stake were Sotheby’s and TIBCO Software Inc. (NASDAQ:TIBX). Big Data operator TIBCO has been adding recurring-revenue contracts. Of all things, staffing issues pose a problem for the company, though my colleague Anders Bylund remains a “committed owner,” seeing its competitors having trouble competing with it. The company has been restructuring, with bulls hoping for improved performance. Its forward P/E of 20.6 is well below its five-year average of 31.

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

Best States To Practice Medicine

The 10 Best States to Have a Business

The 12 Most Expensive Apple (AAPL) Apps in the Market

The 10 Richest Billionaires in the World

10 Biggest Kickstarter Failures

The 10 Best Places to Work At

The Top 10 of Google Inc (GOOGL)’s Most Expensive Acquisitions

13 Best Cities to Visit in South America

10 Most Expensive Works of Art of All Time

The 10 Richest Banks in the World

The 10 Best-Paying Jobs in America (2014)

7 Most Expensive Foods in the World

The World’s Top 10 Earning Authors

Five Wicked and Very Expensive Items (and Other “Stuff”) Sold on eBay

10 Biggest Celebrity Bankruptcies

The Top 10 Highest Paid CEOs in 2014

The 10 Most Expensive Real Estate Cities in America

10 Most Expensive States To Live In America

The 10 Best Airlines in the World

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

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!