Hedge Funds Bought Yelp Inc (YELP) and These Other Stocks

13D and 13G filings are useful tools for investors who want to know what stocks have been recently bought by hedge funds. The advantage of these over 13F filings is that they are much more timely, generally filed within days or a week of taking a large position in a stock; the drawback is that because hedge funds have to meet a certain threshold for reporting a position it is very rare to see them for large cap stocks. Of course, we track all of these filings to get the most complete picture about what hedge funds own and what managers are thinking. Here are five stocks that hedge funds have bought recently:

OMEGA ADVISORS

Billionaire Leon Cooperman’s Omega Advisors (see Cooperman’s favorite stocks) reported a large stake in McMoRan Exploration Co (NYSE:MMR). This is a special situation investment: McMoRan Exploration, along with Plains Exploration & Production Company (NYSE:PXP), is set to be acquired to large natural resources company Freeport-McMoRan Copper & Gold Inc. (NYSE:FCX), which had formerly owned McMoRan Exploration (learn more about the acquisition). Many hedge funds like to invest in merger arbitrage because returns depend on whether or not the merger happens, and therefore are theoretically uncorrelated with the market (find out more about merger arbitrage).

Joho Capital, which is managed by Tiger Cub Robert Karr (research more stocks Karr likes), reported owning close to 900,000 shares of Yelp Inc (NYSE:YELP). The online reviews company is struggling with profitability- Wall Street analysts think that it will get into the black in 2013, but at a very low level. Revenue came in 63% higher last quarter than in the third quarter of 2011, but the stock has still slumped since its recent IPO. In addition, 55% of Yelp’s shares outstanding are held short. We don’t think that it’s a good buy. Read more analysis of Yelp compared to its peers.

Healthcare focused hedge fund Deerfield Management, manage by James Flynn, controls just under 10% of the outstanding shares of medical device company Nxstage Medical, Inc. (NASDAQ:NXTM) according to a recent filing that reported an increase in the number of shares in Deerfield’s portfolio. Nxstage, whose primary product is used for hemodialysis treatment including at patients’ homes, counts Warren Buffett favorite DaVita HealthCare Partners Inc (NYSE:DVA) among its major customers. The company is unprofitable, and from our point of view not likely to see profits next year either, but revenue and operating income have been up and it may be a good stock to watch over the next couple quarters.

Coliseum Capital Management, managed by Christopher Shackelton and Adam Gray, now owns 2.4 million shares of LHC Group, Inc. (NASDAQ:LHC) after buying about 44,000 additional shares at an average price of $20.49. This is up from 2.2 million shares at the beginning of October, when LHC was its largest 13F holding by market value (check out more of Coliseum’s stock picks). LHC is a $370 million market cap home health care company primarily serving Medicare patients, and trades at 14 times earnings. We would note that it’s uncertain whether or not there will be changes to Medicare as a result of federal healthcare policy, but the valuation is low enough to at least be worth considering.

Engility Holdings Inc (NYSE:EGL) had Abrams Capital Management (already a major holder of the stock) buy an additional 140,000 shares. Abrams is managed by former Baupost Group employee David Abrams (see more stocks Abrams has been buying). The engineering services company has a market capitalization of $320 million, but on average over 100,000 shares are traded daily and the current stock price is over $19. Revenue was down last quarter versus a year earlier, and there is considerable short interest, but sell-side projections have the stock trading at 7 times next year’s earnings.

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

7 High-Paying Jobs You Can Do From Home

12 Best Cities to Shop in USA

10 Best States To Practice Medicine

The 10 Best States to Have a Business

The 12 Most Expensive Apple (AAPL) Apps in the Market

The 10 Richest Billionaires in the World

10 Biggest Kickstarter Failures

The 10 Best Places to Work At

The Top 10 of Google Inc (GOOGL)’s Most Expensive Acquisitions

13 Best Cities to Visit in South America

10 Most Expensive Works of Art of All Time

The 10 Richest Banks in the World

The 10 Best-Paying Jobs in America (2014)

7 Most Expensive Foods in the World

The World’s Top 10 Earning Authors

Five Wicked and Very Expensive Items (and Other “Stuff”) Sold on eBay

10 Biggest Celebrity Bankruptcies

The Top 10 Highest Paid CEOs in 2014

The 10 Most Expensive Real Estate Cities in America

10 Most Expensive States To Live In America

The 10 Best Airlines in the World

The 10 Best-Selling Cars in 2014

The 10 Best Industries to Invest In

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

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!