Hoplite Capital’s Latest 13F Reveales a Large Stake in Sunedison Inc (SUNE) & Actavis plc (ACT)

In the latest round of 13F filings, Hoplite Capital Management, led by John Lykouretzos, revealed its equity portfolio as of the end of the first quarter of the year. The total value of the portfolio amounts to $3.62 billion, slightly higher than the previous quarter value of $3.56 billion. Mr. Lykouretzos is a former employee of Andreas Halvorsen’s Viking Global Investors and Julian Robertson‘s Tiger Management. Even though the manager of Hoplite is an expert in industrials and financial services, the equity portfolio of the fund primarily consists of technology and services stocks. In this article we will take a look at the five largest holdings in terms of value from Hoplite’s latest 13F.

Sunedison Inc (NYSE:SUNE)

Sunedison Inc (NYSE:SUNE) is one of the successful bets made by Mr. Lykouretzos during the first three months of the year. Hoplite reported a new stake in the company, which contains over 16.01 million shares, reportedly worth $301.64 million. The stock of Sunedison Inc (NYSE:SUNE) surged by almost 50% since the beginning of the year, outperforming most of its peers in the semiconductor equipment industry. However, the company has been posting negative earnings in the past couple of years. Its EBITDA for 2013 amounted to -$130 million, while Earnings per Share were at -$2.46, versus -$0.66 a year earlier.

Nevertheless, investors seem to be confident about this company. David Einhorn of Greenlight Capital is bullish on Sunedison Inc (NYSE:SUNE) upping his stake by an eightfold to 11.85 million shares, while Rishi Bajaj, Toby Symonds, and Steve Tesoriere‘s Altai Capital owns around 18.43 million shares as of the end of March.

The stock of Actavis plc (NYSE:ACT) also performed well so far, gaining around 26% year-to-date. Hoplite, however, has reduced its stake in the pharmaceutical company by 40% to 883,600 shares, worth $181.89 million. Actavis currently trades at a forward P/E of around 13.00, with the consensus estimates for the company’s earnings for the current year standing at approximately $13.50 per share. Dan Loeb‘s Third Point and Stephen Mandel‘s Lone Pine Capital reported new stakes in Actavis plc (NYSE:ACT) in their latest 13F filings, which contain 2.50 million and 2.38 million shares respectively. In Third Point’s equity portfolio, the $514.63 million stake in Actavis plc (NYSE:ACT) is currently the largest holding, amassing 7.60% of the portfolio.

In the next two companies, Hoplite has edged down its positions by 16%. In H & R Block Inc (NYSE:HRB) it reported a $171.33 million position, which contains 5.68 million shares, and in Lowe’s Companies, Inc. (NYSE:LOW) it revealed ownership of 3.06 million shares, valued at $149.58 million.

H & R Block Inc (NYSE:HRB) is an $8.0 billion tax preparation and banking services company. Viking Global is another large shareholder of the company, owning 17.05 million shares, worth $514.86 million.

Lowe’s Companies, Inc. (NYSE:LOW)’ stock edged down 5% year-to-date and trails a P/E of around 20.90, slightly below the Home Improvement Stores industry average of 25.00. Viking Global also owns a significant stake in Lowe’s Companies, Inc. (NYSE:LOW), reporting a $885.71 million position, which contains over 18.11 million shares.

In addition, Hoplite revealed a $144.46 million stake in Mohawk Industries, Inc. (NYSE:MHK), which contains 1.06 million shares, the holding being increased by 17% over the quarter. Former Lykouretzos’ boss Andreas Halvorsen is also bullish on this carpet manufacturer, holding 2.51 million shares, worth $341.70 million. Robert Joseph Caruso’s Select Equity Group is another shareholder of Mohawk Industries, Inc. (NYSE:MHK) which owns 2.42 million shares, worth $329.49 million.

Disclosure: none

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