Latest Stock Picks from Highbridge Capital Management: Broadcom Corporation (BRCM), Transocean LTD (RIG), Eaton Corporation, PLC Ordinary Shares (ETN)

Page 1 of 2

HIGHBRIDGE CAPITAL MANAGEMENTGlenn Dubin co-founded Highbridge Capital Management with childhood friend Henry Swieca over twenty years ago, although Swieca has since left the firm. JP Morgan acquired Highbridge last decade but has kept Dubin on as CEO in a successful example of a financial institution buying a fund. We take a high interest in the firm’s holdings, as we have found that the most popular small-caps amongst hedge funds can lead to substantially high gains compared to market indexes (see how our strategy has returned 29% since last September here). We have examined Highbridge’s newest picks from last quarter, which you can read about below.

Receiving a $61mm investment from the firm, Broadcom Corporation (NASDAQ:BRCM) landed the top spot as Highbridge’s best new stock play. The semiconductor and chipmaker has created a history of beating earnings expectations, with the most recent release at the end of January delivering higher EPS and revenues that grew year over year. Rating agencies Cowen and Piper Jaffray have initiated coverage of Broadcom Corporation (NASDAQ:BRCM) since the announcement, giving the company Overweight and Outperform ratings, respectively. JP Morgan is slightly more reserved, downgrading BRCM to neutral in light of what the firm believes will be a slower adoption of smartphones going into next year. Billionaire Ken Griffin of Citadel Investment Group has built a position of nearly $5mm in Broadcom Corporation (NASDAQ:BRCM) (see his fund’s major positions here).

Transocean LTD (NYSE:RIG) comes in at the second spot on our list, with a $52mm commitment from the hedge fund. Although RIG saw a slight decline in popularity amongst the hedge funds that we cover, Wall Street analysts still have high hopes for the oil rig operator, giving the stock a one year mean price target north of $61, representing  a potential 15% jump in price from current levels. Famed investor Carl Icahn has been lobbying Transocean LTD (NYSE:RIG) to pay a $4/share annual dividend and add three new members to its board, with RIG’s counter-response agreeing to a $2.24/share dividend, much to Icahn’s chagrin. An agreed upon amount has yet to be announced. Icahn currently holds about 5.8mm shares in his Icahn Capital fund (view his portfolio’s make-up here).

Eaton Corporation, PLC Ordinary Shares (NYSE:ETN) landed a spot in Dubin’s portfolio with a purchase of 950,000 shares. The diversified power management company has seen strong support from analysts this year, with positive comments from Credit Suisse and ISI Group. Investors who bought in a year ago would be up almost 27% now, all while collecting the high dividend yield of 2.7%. The company added to that dividend last month, pushing it from $0.38 to $0.42. Eaton Corporation, PLC Ordinary Shares (NYSE:ETN) announced the completion of its Cooper Industries acquisition late last year, with the stock gaining 19% since then. Billionaire Mario Gabelli of GAMCO Investors pushed up his ownership to 750,000 shares in Q4 2012 (check out his fund’s top stocks here).

Read on to see the fund’s other new plays.

Page 1 of 2
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 Top Reasons For Getting Fired

The 3 Best States to Start an LLC

10 Jobs That Allow You to Travel

7 High-Paying Jobs You Can Do From Home

12 Best Cities to Shop in USA

10 Best States To Practice Medicine

The 10 Best States to Have a Business

The 12 Most Expensive Apple (AAPL) Apps in the Market

The 10 Richest Billionaires in the World

10 Biggest Kickstarter Failures

The 10 Best Places to Work At

The Top 10 of Google Inc (GOOGL)’s Most Expensive Acquisitions

13 Best Cities to Visit in South America

10 Most Expensive Works of Art of All Time

The 10 Richest Banks in the World

The 10 Best-Paying Jobs in America (2014)

7 Most Expensive Foods in the World

The World’s Top 10 Earning Authors

Five Wicked and Very Expensive Items (and Other “Stuff”) Sold on eBay

10 Biggest Celebrity Bankruptcies

The Top 10 Highest Paid CEOs in 2014

The 10 Most Expensive Real Estate Cities in America

10 Most Expensive States To Live In America

The 10 Best Airlines in the World

The 10 Best-Selling Cars in 2014

The 10 Best Industries to Invest In

The 10 Most Expensive States to Own a Car In

Top 10 Business Schools in US: 2014 Rankings

Top 20 Female Billionaires in 2014

6 Movies That You Should Watch to Better Understand The Cold War

Top 15 Best Paying Jobs for Women in 2014

Top 6 Things Rich People Do Differently Every Day

5 Retirement Mistakes To Avoid (and Einstein’s Famous Quote)

11 Smartest People in the World

6 Films About the Financial World You Need To Watch (While “The Wolf” is Not Around)

Warren Buffett and Billionaires Are Crazy About These 7 Stocks

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

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!