Event-Driven Argentiere Capital is Bullish on Foster Wheeler AG (FWLT) & Time Warner Cable Inc (TWC)

Deepak Gulati is the former head of global equity proprietary trading at JPMorgan Chase & Co. (NYSE:JPM) and the founder and manager of Argentiere Capital, a Switzerland-based hedge fund. Gulati launched his hedge fund at the beginning of 2013, with over $1.0 billion in assets, according to HFM Weekly. The fund is engaged in volatility trades and bets on the rate of appreciation or decline of stocks, Bloomberg said. Moreover, Argentiere focuses on even-driven investment style, betting on the oscillations in the stock prices caused by various corporate announcements.

In its latest 13F filing, Argentiere revealed an equity portfolio worth $109.2 million, significantly up from $90.3 million held in the previous quarter. The filing also showed, that the fund’s equity portfolio is split primarily among Services and Basic Materials stocks. The largest holding in terms of value is represented by Foster Wheeler AG (NASDAQ:FWLT), in which the fund initiated a new stake during the first quarter of the year, and currently holds 1.36 million shares, valued at $44.14 million. This holding amasses more than 40% of Argentiere’s equity portfolio.

Foster Wheeler AG (NASDAQ:FWLT)

The stock of Foster Wheeler AG (NASDAQ:FWLT), a $3.3 billion company remained almost unchanged over the past couple of months. The company is engaged in engineering, construction and project management for oil & gas and electrical power industries. Several hedge funds we track reported holding shares of Foster Wheeler AG (NASDAQ:FWLT), the largest holding being in Kerr Neilson‘s Platinum Asset Management’s equity portfolio, which contains 9.94 million shares, valued at $322.36 million. Thomas Steyer‘s Farallon Capital also initiated a stake in the company during the first quarter, reporting ownership of 3.27 million shares in its latest 13F.

Another company, which represent a major stake in Argentiere’s equity portfolio is Time Warner Cable Inc (NYSE:TWC), of which the fund owns 300,000 shares, worth $41.15 million, the stake amassing 38% of the equity portfolio. Earlier this year, Time Warner Cable Inc (NYSE:TWC) agreed to merge with Comcast Corporation (NASDAQ:CMCSA) in a stock transaction, following which Time Warner Cable shareholders will be able to receive 2.875 shares of Comcast for each Time Warner Cable Inc (NYSE:TWC) share held. In this way, the value of the deal amounts to $158.8 per share, which clearly shows that Argentiere’s bet is a profitable one. D. E. Shaw‘s D E Shaw has also been bullish on Time Warner Cable Inc (NYSE:TWC), upping its stake by 450% to 3.23 million shares held as of the end of March.

While the first two holdings altogether amass 78% of the Argentiere’s equity portfolio, the rest of the fund’s holdings represent small positions in terms of value. Forest Laboratories, Inc. (NYSE:FRX) comes in as the third largest holding, valued at $9.20 million, which contains 99,700 shares. Forest is another pre-merger company, which earlier this year entered into an agreement to be acquired by Actavis plc (NYSE:ACT) for $89.48 per share paid in cash and stock of Actavis. On the back of the announcement, the stock of Forest Laboratories surged by over 30%, while its year-to-date gain amounts to almost 60%. Carl Icahn also owns shares of Forest Laboratories, Inc. (NYSE:FRX), his stake containing 30.66 million shares, worth $2.83 billion.

Verizon Communications Inc. (NYSE:VZ) and Hertz Global Holdings, Inc. (NYSE:HTZ) are two other companies that Deepak Gulati added to his fund’s equity portfolio during the first three months of the year. In Verizon Communications Inc. (NYSE:VZ), Argentier reported a $2.38 million position, which amasses 50,000 shares, and it also reported holding 50,000 shares of Hertz Global Holdings, Inc. (NYSE:HTZ), with an aggregate value of around $2.0 million. Verizon Communications Inc. (NYSE:VZ) was also a new position in Warren Buffett‘s Berkshire Hathaway equity portfolio, the holding amassing 11.02 million shares, valued at $524.35 million. In Hertz Global Holdings, Inc. (NYSE:HTZ), a hedge fund that reported a new significant stake is Larry Robbins‘ Glenview Capital, which owns 13.26 million shares, worth $353.34 million.

Disclosure: none

Comments
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

Cheapest Cities to Visit in the US

Most Expensive Summer Camps

Most Expensive Animals in the World

Most Expensive Specialty Crops in the World

Movies That Took Ages to Make

The Longest Hollywood Films Ever Made

Most Expensive Concert Stages

The Richest Bands of all Time

10 Most Corrupt Countries 2013 List

10 Countries with the Highest Quality of Life Index

Most Expensive Mattresses in the World

5 Smallest Countries by Land Area

The Ultimate Heartbreak Songs

Richest Teenagers in the World

10 Most Haunted Places in America

10 Best Places to Retire in Florida East Coast

Top 10 Places to See Before You Die

Top 8 Countries in the World Where Justice Prevails

10 Richest States in America

15 Wealthiest Countries in the World

Richest Singers in the World

Most Expensive Tasting Menu in New York City

Most Expensive Baby Items in the World

Most Expensive Hotel Suites in Vegas

Most Expensive Brunch in New York City

Most Expensive Beef Cuts in the World

25 Best Colleges to Get a Job

Top 10 US Supermarkets

The 25 Most Dangerous Cities in the World to Visit

Most Expensive Xbox Games

Top 11 Cities Where Billionaires Live

Top 10 Most Charitable Companies in America

Most Expensive Seafood in the World

The 10 Wildest Conspiracy Theories

The 10 Best Job Markets in the US

Top 10 Accounting Scandals of All Time

The 25 Biggest Cities in the World

Top 10 Best Paying Virtual Jobs

Most Expensive Leather Shoes in the World

Top 6 Things to Buy in March

The 10 Most Stressful Jobs in America – 2014 List

Top 10 Jobs for Introverted People

Top 10 Honeymoon Destinations in the World

Top 10 Highest Paying Jobs in the World

Most Expensive Day-Care in New York City

The 10 Cheapest Places to Retire Abroad

Top 10 Most Expensive Luxury Cars in the World – 2014

Killer Small Business Ideas

The 50 Best Personal Finance Blogs

Most Expensive Apartments in New York City

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!