Kraft Foods Group Inc (KRFT) Up Over 30% Following Merger Agreement With 3G Capital’s Heinz; Plus the Brazilian Fund’s Top Picks

Aside from its ownership and management of several companies, 3G Capital also holds an equity portfolio, which is managed by Alexandre Behring and is valued at $1.08 billion as of the end of 2014. Ignoring its stake in the S&P 500 ETF (SPY), the firm’s largest long position is in Santander Consumer USA Holdings Inc (NYSE:SC), in which it owns 3.15 million shares valued at $61.75 million. The position was increased by 21% during the fourth quarter. Santander Consumer USA Holdings Inc (NYSE:SC), a holding company primarily involved in auto financing and services, counted Lee Ainslie’s Maverick Capital as its biggest shareholder among the funds that we track. Ainslie’s Maverick Capital held 14.45 million shares of Santander at the end of 2014.

Twenty-First Century Fox Inc (NASDAQ:FOX) represents the next-largest stake in terms of value in 3G’s equity portfolio. 3G holds 1.65 million shares of Fox valued at $60.73 million, according to its 13F filing. The U.S cable giant has been down slightly since the start of 2014, amid its attempt to buy Time Warner Inc (NYSE:TWX). The company run by Rupert Murdoch later  withdraw its bid, which had been valued at about $80 billion. Donald Yachtman’s Yachtman Asset Management and Jeffrey Ubben’s ValueAct Capital are the two largest Twenty-First Century Fox Inc (NASDAQ:FOX) shareholders among the funds we track with 39.21 million and 30.30 million shares respectively.

3G is also an investor in Time Warner Cable Inc (NYSE:TWC), who was on the other end of a merger play in 2014, as the cable company was purchased by Comcast Corporation (NASDAQ:CMCSA) for  $45 billion, pending approval from the Federal Communications Commission, which has been delayed recently. 3G opened a new position in Time Warner Cable during the fourth quarter and holds slightly below 368,700 shares valued at $56.06 million as of the end of 2014. Chris Hohn’s Children’s Investment Fund is the largest Time Warner Cable shareholder with 9.87 million shares.

These large-cap stocks fall outside the purview of our market-beating small-cap strategy, which managed to outperform the S&P 500 ETF (SPY) by 79.4 percentage points over the past two-and-a-half years, returning 132%. However, tracking activist campaigns and merger plays can provide opportunities for investors to see great returns even from large-cap companies, which is why keep track of most significant moves that hedge funds disclose in their filings with the Securities and Exchange Commission.

Disclosure: None