Elliott Management Talks Activism, Korea, and Favorite Stocks

Shares of Encana Corporation (NYSE:ECA) have surged by nearly 100% so far in 2016 and the number of funds from our database long the stock declined by two to 26 in the second quarter ending June. Elliott Associates’ co-CEO said that the stock potentially has 50 to 60% upside left. Encana CEO Doug Suttles is credited for transforming the structure of the company. The company recently issued new stock and it trades at discount to the sum-of -parts valuation. Encana Corporation has over 10,000 identified drill locations which may provide 35% after-tax returns. The company’s relatively conservative forecast doubled the corporate margin, signaling bright future ahead. Elliott has not disclosed holding shares of Encana.

In Hess Corp (NYSE:HES), Elliott held 18.8 million shares worth $1.12 billion at the end of June. Overall, 37 funds tracked by us held positions in Hess Corp worth around $1.87 billion in aggregate at the end of the second quarter, having amassed about 9.90% of the company’s outstanding stock. Pollock said that Hess Corporation holds assets which have longer lead time and this pattern leads to cash-flow outspend. However, from 2017 onwards, the assets are likely to turn into producers of cash than consumers. Pollock also stated that Hess Corp (NYSE:HES)’s position in the Bakken and its offshore assets are expected to benefit its performance and stock price.

For learning more about energy stocks, read our article on five energy stocks to invest in.

Allergan plc Ordinary shares (NYSE:AGN) stock is down by 37% so far this year. Heading into the third quarter, Elliott held 2.73 million shares of Allergan worth $632 million, being one of the 131 funds from our database that held shares at the end of June, down from 170 funds a quarter earlier. In the interview, Pollock pointed out that Elliott has held shares of Allergan since 2015. He added that the company recently sold its generic pharma business to Teva Pharmaceuticals. Net its cash position, the company’s stock trades at considerable discount to its peers, Pollock considers. The company also has strong portfolio of aesthetic products, giving the company a strong position in the market segment which is not highly regulated. Moreover, Allergan may also use its substantial cash pile to buyback its stock or for paying dividend.

Disclosure: none