Hedge Fund Canyon Capital’s Top Stock Picks Include Clear Channel

Page 1 of 2

Canyon Capital Advisors was founded in 1990 by Josh Friedman and Mitch Julis and has since grown to $19 billion in assets under management. Before co-founding Canyon, the two had worked together at Drexel Burnham Lambert; Friedman had worked in high yield and private placements following a stint at M&A at Goldman Sachs while Julis worked with distressed and special situation securities. Both are graduates of Harvard’s joint JD/MBA program.

While many value investors start with the income statement- caring about earnings first and foremost- Friedman and Julis like to take an in depth look at a stock’s balance sheet no matter where in the capital structure they are looking to invest (Canyon invests in debt, including high-yield debt, as well as equities). As a result, it tends to favor similar companies for debt and equity investments: solid cash flow generators that tend away from using that cash to grow the business. While many value investors say that they like to balance value metrics with growth characteristics, return on equity, quality management, or some other factor, Canyon at least indirectly claims to put less emphasis on these factors. The fund filed a 13F in November, disclosing many of its long equity positions as of the end of the third quarter of 2012. See what stocks Canyon reported owning or read on for some of the fund’s top picks:

VINIK ASSET MANAGEMENT

Belo Corp. (NYSE:BLC). The fund owned 4.3 million shares of the $780 million market cap operator of television stations (on average, over 600,000 shares are traded daily). Belo trades at only 8 times trailing earnings, and revenue and earnings grew at double-digit rates in the third quarter compared to the same period in 2011. In addition, the dividend yield is over 4%. Belo was one of Kelly Cardwell’s Central Square Management’s top stock picks last quarter as well (check out Cardwell’s stock picks).

Clear Channel Outdoor Holdings, Inc. (NYSE:CCO). Down 46% in the last year, and not expected to be profitable in 2012 or 2013, this was another of Canyon’s stock picks as the fund reported owning 3.2 million shares. Abrams Capital Management, managed by David Abrams, was another owner of the stock according to that fund’s 13F filing (find more stocks in Abrams’ portfolio). The company looks expensive in terms of EBITDA as well, with an EV/EBITDA multiple of 9.9x.

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 44 percentage points in 21 months Learn how!

Lists

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 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

Best 7 Online Courses to Take: Free Finance MOOCs

Top 6 Bad Habits that Promote Failure

20 Most Valuable Soccer Teams in the World in 2013

12 Most Expensive Countries for Foreign Students

Top 30 Most Influential Women in the World

Top 20 Most Expensive New Year Eve Shows

Top 5 Best Vocational Careers

Top 10 Jobs for 2014 by Salary Gain (Predictions)

Top 5 Digital Trends for 2014

Top 6 Things You Can Do To Increase Your Productivity

Top 9 Trending Smartphones in 2013

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!