Hedge Funds Bought Brinker, Navistar, and More

Page 1 of 2

When hedge funds or other major investors acquire more than 5% of the outstanding shares of a stock, or make significant changes to their position, they must file fairly quickly with the SEC, which discloses the filings to the public. This allows investors a relatively fresh look at what stocks managers think are good buys, though the disclosure requirements tend to mean that only large positions in mid cap or small cap stocks are reported. Investors can then look at these stocks and decide if they are in fact good values or are better left alone. Here are five stocks that hedge funds have bought recently:

CITADEL INVESTMENT GROUP

Billionaire Ken Griffin’s Citadel Investment Group (check out Griffin’s favorite stocks) reported owning just over 4 million shares of Brinker International, Inc. (NYSE:EAT), which owns the Chilis and Maggiano’s Little Italy restaurant brands. This was up from 80,000 shares at the beginning of October, so we know that the fund has been buying over the last two months. Brinker had made it onto our list of the most popular restaurant stocks among hedge funds for the third quarter, a list dominated by quick service restaurants. With Brinker carrying a trailing P/E of 16, and earnings up 18% last quarter versus a year earlier (though revenue growth was much weaker) it and other table service restaurants such as Darden Restaurants, Inc. (NYSE:DRI) might be good values.

MHR Fund Management, which is managed by former Carl Icahn employee Mark Rachesky, increased its stake in Navistar International Corp (NYSE:NAV) to 12 million shares. Icahn, a billionaire activist investor (see Icahn’s stock picks), had bought up shares of Navistar and of Oshkosh Corporation (NYSE:OSK) believing that he could create shareholder value by merging the two. Navistar is barely profitable on a trailing basis, and the stock is down 42% in the last year as business has suffered. We think we would avoid it. Read more about Icahn, Rachesky, Navistar, and Oshkosh.

Page 1 of 2
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

The Best B-Boy Movies

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

Richest Doctors in the World

The Best Movie Sountracks Ever

The Highest Grossing Musicals on Broadway

The Most Successful Reality TV Stars

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

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!