Hedge Funds Have Bought The Pep Boys – Manny, Moe & Jack (PBY), Emulex Corporation (ELX), and More

Page 1 of 2

After a hedge fund or other major investor acquires at least 5% of the outstanding shares of a public company or makes significant changes to that position, they file a 13D or 13G with the SEC. While these filings aren’t nearly as comprehensive as the 13F filings which we use to help develop investment strategies (we have found, for example, that the most popular small cap stocks among hedge funds earn an average excess return of 18 percentage points per year), it can be useful to have more up-to-date information about specific stocks that specific funds are buying. Here are five stocks which hedge funds have bought recently:

A 13G has disclosed that Glenhill Advisors, run by Glenn Krevlin and his team, own 2.7 million shares (or 5%) of The Pep Boys – Manny, Moe & Jack (NYSE:PBY). Find Glenhill’s favorite stocks. The company has been struggling recently, with very little pretax income in its most recent quarter. Analysts expect business to improve but even their forecasts for decent growth over the next year or so result in a forward P/E of 18. At that pricing we’d want to see sustainable moderate to high earnings growth, and given The Pep Boys – Manny, Moe & Jack (NYSE:PBY)’s recent performance we wouldn’t consider it a good buy right now.

Jeff Smith

Starboard Value, an activist fund managed by Jeffrey Smith, has bought up the equivalent of 6.3 million shares in data center networking device company Emulex Corporation (NYSE:ELX) (see Starboard’s stock picks). Emulex Corporation (NYSE:ELX) has reportedly hired Goldman Sachs to help it explore a sale process. Earnings per share were negative in the first nine months of the company’s last fiscal year (which ended in June) though Wall Street analysts are fairly optimistic about its prospects and as a result the current-year earnings multiple is 13. With revenue down, we don’t like the stock in terms of its fundamentals and think that Starboard is speculating on a deal happening.

Brian Taylor’s Pine River Capital Management reported a 9.2% stake in American Capital Mortgage Investment Crp (NASDAQ:MTGE), owning almost five times as many shares as it had owned at the beginning of April. Check out more stocks Pine River owns. The real estate investment trust pays a high dividend yield- as do many other such businesses, particularly those which invest in mortgage-backed securities- but we’d note that with the stock down over 30% year to date even with its high yield recent buyers have lost money. Interestingly, the P/B ratio is considerably less than 1. Mortgage REITs, of course, are risky due to their business.

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!