Highline Capital Management Bets on Healthcare, Basic Materials & Services Stocks

Highline Capital Management is a fund led by Jacob Doft. Founded in 1995, Highline is a long/short equity hedge fund which has an equity portfolio worth $1.46 billion, unchanged in comparison with the previous quarter. Even though the fund holds a diversified equity portfolio, it primarily invests in Services stocks, which account for slightly less than a half of the equity portfolio, followed by Basic Materials and  Healthcare sectors. In this piece we will analyze the top five picks in terms of value in which Highline holds long positions as of the end of March.

AbbVie Inc (NYSE:ABBV)

Highline’s commitment to Healthcare stocks is already seen by looking at the first largest holding which is represented by AbbVie Inc (NYSE:ABBV), of which the fund owns 2.07 million shares, with a reported value of $106.36 million. The fund has considerably raised its exposure to this pharmaceutical company, in the previous quarter holding some 33,800 shares. AbbVie Inc (NYSE:ABBV) recently reported that the FDA received orphan drug designation for its HUMIRA® drug developed for treatment of non-infectious eye diseases. David E. Shaw‘s D E Shaw is also bullish on AbbVie Inc (NYSE:ABBV), holding 5.86 million shares as of the end of March, up by almost 70% on the quarter. The value of Shaw’s stake amounts to $301.20 million.

On the second place comes Comcast Corporation (NASDAQ:CMCSA), in which Highline reported a $103.82 million position, which contains around 2.07 million shares, down by 17% on the quarter. Following the upcoming acquisition of Time Warner Cable Inc (NYSE:TWC), Comcast Corporation (NASDAQ:CMCSA) will increase its potential and will strenghten its position as one of the leaders on the telecommunications market. Alex Snow‘s Lansdowne Partners, and Jean-Marie Eveillard‘s First Eagle Investment Management are two of the largest shareholders of Comcast Corporation (NASDAQ:CMCSA), owning 26.80 million and 20.22 million shares respectively.

Next comes $4.2 billion Teekay Corporation (NYSE:TK), of which Jacob Doft’s fund reported holding 1.63 million shares, worth $91.62 million. The stock of Teekay boosted by 21% since the beginning of the year and trades at a forward P/E of 35.40. Teekay is engaged in providing marine transportation services for crude oil and gas. Teekay has reported losses for the past two years, however, for the current year, the company is expected to report Earnings per Share of $0.49 in comparison with -$1.13 posted for the last year. Aside from Highline, Alec Litowitz and Ross Laser‘s Magnetar Capital also owns shares of Teekay Corporation, reporting holding 5.07 million shares in its latest 13F.

The fourth and, respectively, the fifth largest positions in Highline’s equity portfolio are represented by Huntsman Corporation (NYSE:HUN) and Universal Health Services, Inc. (NYSE:UHS). In Huntsman, the fund reported a $87.49 million stake, which contains more than 3.58 million shares, the stake being increased by around 50% on the quarter. The stock of the $6.5 billion manufacturer of chemical products raised by 9% since the beginning of the year and sports a P/E of 30.2, significantly above the industry average of 17.00. Soroban Capital Partners, led by Eric W. Mandelblatt, reported holding 8.74 million shares of Huntsman Corporation (NYSE:HUN), down by 24% on the quarter.

Universal Health Services, Inc. (NYSE:UHS) is a company specialized in operating different healthcare facilities, such as acute care hospitals, or behavioral health centers. Highline edged up its stake in the company by 4% to 982,600 shares, worth $80.64 million. Another hedge fund that is bullish on Universal Health Services, Inc. (NYSE:UHS) is Israel Englander‘s Millennium Management, which raised its stake by 16% to 912,100 shares held as of the end of March.

Disclosure: none

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.
Click here to Read Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 74 percentage points in 2.5 years. Our beta is only 1.2 (download a FREE newsletter and see the details inside)

Lists

Best Selling Magazines in the World

Shortest People in History

The Most Celebrated Holidays in the World

Most Expensive Handbag Brands in the World

Top Selling Comic Book Issues of this Century

The Most Powerful Women in Politics

Best Paid DJs

Most Rebellious Female Artists

Best Paid TV Actresses of 2014

Best Paid Actors of 2014

Most Expensive Horses in the World

Tallest People Ever

Most Encouraging Feminist Celebrities

Best Paid Supermodels of 2014

Top 10 Suburbs for Retirement in 2015

10 Wealthiest Cities in America

Top 10 TED Talks for Entrepreneurs

Best TED Talks on Education

25 Most Dangerous Places to Live in America

Top 10 Ski Resorts in the United States – 2014 List

Top 10 Most Remote Places in the World

Most Visited Museums in the United States

Wealthiest Photographers in the World

Most Famous Gay Athletes

The World’s Most Famous Circuses

Best Hair Stylists

Most Popular NASCAR Drivers

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

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!