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

Biotech Insider Alert - $6 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
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 Romance Movies of all Time

The Most Wanted Drug Lords

The Oldest Money Managers

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Best Travel Destinations in Australia

World’s Most Expensive Musical Instruments

World’s Most Famous Animals

Most Expensive Cakes in the World

Most Expensive Kosher Champagne in the World

Most Expensive Kosher Wine in the World

The Most Surprisingly Dark Fairy Tales

Most Popular Travel Destinations in Asia

The 10 Most Expensive Dresses Ever Worn to the Oscars

World’s Most Visited Art Museums

Best Countries for Photographers to Work in

Best Paid Jobs in the Film Industry

The Most Renowned Recovered Paintings Ever

Child Stars That Turned out Just Fine

Books That Were Banned in the Past Century

World’s Richest Dancers

Best Remedies against Bad Breath

Foods That Improve Your Skin Texture

Best-Selling Children’s Books of all Time

Foods That Boost Your Libido

Best-Selling Books of all Time

The Most Expensive Academy Awards Jewelry in History

Most Expensive Japanese Restaurant In New York City

The Best B-Boy Movies

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

Richest Doctors 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 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!