Facebook Inc (FB), Sprint (S) Among JAT Capital’s Big Bets

Page 1 of 2

JAT Capital was founded by John Thaler in 2007 after leaving the private equity firm Shumway. Thaler graduated from the University of Chicago with a BA in economics and worked five years for the private equity firm Shumway, focusing on technology, media and telecom – he now runs a strategy with a focus on these industries. His firm, JAT Capital, is a long/short equity hedge fund based in New York City. In reviewing the firm’s most recent 13F – which is a filing with the SEC that reveals the majority of a hedge fund’s publicly owned securities – we have identified JAT’s top five stocks:

Liberty Media Corp (NASDAQ:LMCA) is JAT’s top stock pick as of 3Q 2012, accounting for over 7.9% of the firm’s total 13F portfolio. The media company was a new addition to JAT’s portfolio and is up over 50% during the last 12 months. With plans to spin off Starz Entertainment, Liberty should be able to better focus its operations, where the Starz spin-off will now allow Liberty to focus on Sirius and Barnes & Noble. Liberty invested some $200 million in Barnes & Noble for preferred stock that can be converted into 12 million shares.

Although the book retail business has been in decline, Barnes & Noble’s e-reader has been showing solid growth and is 2nd in the e-book market behind the Kindle. Liberty Media is still in its pursuit to acquire more than 50% of Sirius, where its Sirius investment should benefit from the satellite radio company’s niche and dominant position in the auto industry, where demand for autos is expected to be up in 2013.

Warren Buffett portrait

From a valuation standpoint, Liberty is very much on the cheap side when compared to media giants Comcast and Time Warner – both trading at 18x earnings – compared to Liberty’s 8x. Billionaire Warren Buffett is the top fund owner of Liberty among those we follow with over 5 million shares (check out Warren Buffett’s top picks).

Expedia Inc (NASDAQ:EXPE) is JAT’s second largest 13F holding, making up nearly 7.4% of the firm’s 13F portfolio. Expedia is up 100% over the last twelve months and continues to be one of the top online travel companies. After spinning off TripAdvisor in 2011, Expedia has been spending more on marketing and advertising, but despite the higher spending, the online travel site still has a robust balance sheet with $2.3 billion in cash and only $1.3 billion in debt. The internet company also operates the Hotels.com site. Expedia is one of the leaders in the travel industry trading in line with in the industry at 25x earnings – compared to major peers Priceline (25x) and Ctrip (28x). Jim Simons is one of Expedia’s top investors (check out Jim Simons’ big bets).

Read on to see another addition to JAT’s portfolio…

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

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

Top 5 Things You Might Be Doing Wrong With Your Business

Top 5 Strategic Technology Trends in 2014

Top Rags to Riches Stories

Parenting Behavior That Promotes Future Leaders

Top 5 Mistakes Made by Small Businesses

Top 5 Most Common and Potentially Devastating Financial Blunders

Top 5 Highest Paying Jobs for Web Designers

Top 6 Most Respected Professions that Also Pay Well

Top 5 Pitfalls Investors Should Avoid

Top 6 Lawyers and Policy Makers Under 30

Top 6 New Year’s Resolutions for Entrepreneurs

Top 7 Locations to Check in on Facebook

Top 5 Mistakes made by Rookie eBay Sellers

Top 7 eBook Publishers in 2013

Top 6 Health Industry Trends in 2014

5 Lessons for Entrepreneurs from Seth Godin

Top 5 Success Tips from Jordan Belfort – the Wolf of Wall Street

Best Master’s in Finance Degree Programs

Top 6 Earning Celebrities Over 50

The most expensive sports to play

Top 7 Earning Celebrities Under 25

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!