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
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. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

Picture Perfect: The 6 Smartphones with the Best Cameras

The 10 Best Countries To Work In the World

A Profitable Day At The Track: 5 Tips For Betting On Horses

Tearing You Apart: 6 Bad Habits That Ruin Relationships

Learning on the Job: The 6 Biggest Mistakes Parents Make

Shopaholics Rejoice: The 12 Biggest Malls in the World

Fright Night: 10 Horror Movies Based on True Stories

Mach Mania: The 10 Fastest Jets in the World

Military Heavyweights: The 10 Countries with the Most Tanks

All In: The 7 Richest Poker Players in the World

Abracadabra: The 10 Best Magicians in the World

The 10 Richest Asian Countries in the World in 2014

Eyes in the Sky: 10 Things You Need to Know About Drones

Rising Stars: The 6 Best Silicon Valley Startups

Military Muscle: The 5 Most Advanced Armies in South America

All that Glitters: The 7 Most Luxurious Jewelry Brands in the World

5 Things You Didn’t Know About ISIS but Should

Empowering Your Money: The 5 Best Energy Stocks to Invest In

The 11 Best Android Apps You Can’t Get on iOS

The 10 Most Important International Conflicts in 2014

Mood Enhancers: The 20 Most Uplifting Songs of all Time

Lover Beware: The 8 Countries that Cheat the Most

Breath of Fresh Air: The 25 Countries with the Best Air Quality on the Planet

Singles Beware: The 8 Worst Mistakes Made on First Dates

Healthy and Happy: The 10 Countries with Lowest Healthcare Costs

The 6 Best Company Team Building Activities to Build Workplace Camaraderie

Ships Ahoy: The 10 Busiest Shipping Ports in the World

10 Productivity Tips to Save You Time and Help You Do More With Less

Grab a Bite: The Most Popular Fast Food Restaurants in America

Friday Night Thirst: The 10 Most Popular Cocktails in the World

The 6 Greatest Unsolved Mysteries We May Never Figure Out

7 Useless Products You Never Should’ve Bought

The 5 Reasons Why You’re Single and Miserable

The 7 Most Addictive Foods in the World We Can’t Stop Eating (Even Though We Should)

5 Amazing Places You Can Swim with Dolphins

The Top 7 Most Livable Countries In The World

The 10 Most Expensive Baseball Cards Ever Pulled From A Pack

The 5 Easiest Second Languages to Learn for English Speakers

Silver Spoon: The 6 Richest Families in the World

The 20 Countries with the Largest Prison Populations in the World

The Top 10 Richest Actors in the World

The 10 Best Airline Stocks to Invest In Before They Fly Too High

Burger Kings: The 10 Most Expensive Burgers in the World

The 10 Most Ethnically Diverse Countries in the World

The 10 Most Exclusive Credit Cards in the World

The 10 Most Expensive Cruise Ships in the World

The 10 Fastest Supercomputers in the World

The 10 Best Countries for Doing Business 2015

6 Most Expensive Fruits In The World

10 Worst Airlines 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!