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

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 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

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

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!