Hedge Funds Have Been Buying These Five Stocks

The most up-to-date picture on what hedge funds are buying and selling- though it tends to be somewhat limited- comes in the form of 13D and 13G filings with the SEC. These filings occur once a hedge fund or other major investor buys more than 5% of a company’s outstanding shares (and when it adds to or sells out of that position). Here are five stocks that hedge funds have been buying recently:

CITADEL INVESTMENT GROUP

Billionaire Ken Griffin’s Citadel Investment Group reported owning 6.3% of the outstanding shares of Abercrombie & Fitch Co. (NYSE:ANF). The 5.2 million shares that Citadel owned represented a large increase from the relatively small position the fund had at the end of September (find more of billionaire Ken Fisher’s stock picks from the end of Q3), so Citadel seems to have been buying heavily as the stock has rallied in the recent past. Abercrombie & Fitch’s trailing P/E looks high at 34, though in its most recent quarter earnings were up 41% from the third quarter of 2011. Our analysis of Abercrombie & Fitch concluded that its valuation was not that out of place compared to most of its peers, though larger retailer The Gap Inc. (NYSE:GPS) might be a better value. Abercrombie & Fitch had been one of hedge funds’ top small cap picks in the second quarter of the year.

JANA Partners, a value hedge fund managed by Barry Rosenstein, has been campaigning for a breakup of fertilizer wholesaler and retailer Agrium Inc. (NYSE:AGU) and it recently reported that it had further increased its stake in the company to 9.2 million shares. JANA had owned 7.3 million shares of the stock at the beginning of October (see more of Rosenstein’s stock picks). Breakup opportunities are similar to spinouts in that management of the new companies can focus more closely on improving their particular businesses (read more about why hedge funds like spinouts). Currently, Agrium trades at 12 times trailing earnings.

Over 8% of the outstanding shares of $2.7 billion market cap hospital company Community Health Systems (NYSE:CYH) are owned by Glenview Capital per a 13G filed earlier in November. Glenview, which is managed by former Omega Advisors trader Larry Robbins, owned 7.6 million shares; this was up from 1.6 million at the end of September (see more stocks that Glenview owned at that time). When we reviewed the fund’s 13F, we noted that it had also owned shares in market leader HCA Holdings Inc (NYSE:HCA), which has similar multiples to Community Health Systems and whose business has been performing slightly better recently.

Dmitry Balyasny’s Balyasny Asset Management had been buying shares of Walter Energy, Inc. (NYSE:WLT) during the third quarter and continued purchases since the beginning of October have given the fund a position of 3.4 million shares- over 5% of the total shares outstanding. Walter primarily provides metallurgical coal to steel producers such as United States Steel Corporation (NYSE:X). Macro weakness, particularly in Europe and China, has reduced demand for steel and therefore for metallurgical coal, causing revenue to fall 11% in the third quarter of 2012 versus a year earlier. We don’t think that Walter or any other coal company- whether it is thermal coal or metallurgical coal focused- make particularly good investments (find out more about Walter and other coal companies).

Coliseum Capital Management acquired a total of nearly 2.5 million shares of Casual Male Retail Group, Inc. (NASDAQ:CMRG). According to our database of 13F filings, Coliseum had owned 2.4 million shares of the specialty mens’ retailer at the end of September (see more stocks that Coliseum owned). Coliseum is managed by Christopher Shackelton, who had previously worked at Watershed Asset Management, and Adam Gray. At a market cap of about $185 million, Casual Male trades at 17 times forward earnings estimates. The company reported flat revenue in its most recent fiscal quarter (which ended in October) compared to the same period in the last fiscal year.

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

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

6 Ways to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Top 15 Billionaires in 2014

5 Pitfalls To Avoid When Buying a Franchise

Top 20 Medical Schools in the US – 2014 Rankings

4 Business Strategies that Turned Jamie Oliver into the World’s Richest Chef

6 Qualities That Make You A Good Team Player

10 High Paying Seasonal Jobs in America this Holiday Season

The 10 Busiest Shipping Lanes in the World

5 Most Valuable Brands in China

The 10 States with Highest Substance Abuse Rates Crippling Their Populace

The Top 10 Things to Do Before You Die That Will Echo for Eternity

The 10 Best Selling Items on Etsy

Top 10 Things to Do in Tokyo, the Greatest City in the World

10 Mistakes on Social Media that Can Harm You and Will Probably Get You Canned

The 10 Best Cities to Find Jobs in 2014

The 10 Most Controversial Songs Of All Time to Hit (and get Banned from) the Airwaves

The 20 Biggest IPOs in US History

The 10 Best Places to Visit in Mexico that Are Beautiful and Safe

7 Bad Habits that Age You Beyond Your Years

The 40 Best Fortune Cookie Sayings That Will Leave You Bemused, Befuddled, or Beguiled

10 Foods to Eat Before a Workout to Make Every Drop of Sweat Count

The 5 Best Documentaries On Netflix You Must See

The Most Heartwarming and Inspirational Story Of This Halloween Season, It Will Make You Cry and Jump For Joy

10 Best Party Songs of All Time to Bring the House Down With

5 New World Order Conspiracy Theories that Will Strangle the World

The 10 Highest Rated Movies of 2014

The 10 Largest Container Shipping Companies in the World

The 10 Largest Armies in the World: Who Should We Be Afraid Of?

Best Warren Buffett Quotes on Money You Need to Hear

The 10 Highest Suicide Rates by Profession

The 20 Most Underrated Movies of All Time

The 10 Fastest Growing Companies in America

The 10 Biggest Outlet Malls in USA

The 5 Most Popular Rap Songs of All Time

The 10 Countries that Eat the Most Meat

The10 Most Expensive Countries to Fly To

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!