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
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The 10 Largest Pharmaceutical Companies In the World

The 10 Most Expensive Android Apps

The 9 Most Expensive Designer Bags in the World

The 7 Most Expensive Real Estate in the World

The 10 Most Expensive eBay Items Ever Sold

The 10 Most Expensive iPhone Apps

The 9 Most Expensive Designer Shoes in the World

The 10 Most Expensive Cigarette Brands

The 10 Most Expensive Law Schools in the US

The 10 Best Wall Street Movies

The 10 Most Expensive Golf Clubs Ever Sold

The 10 Most Expensive Golf Memberships

The 10 Best Disney Characters Ever Created

The 8 Best Foods for Gaining Weight

The 10 Most Expensive Colleges in the World

The 7 Most Memorable Ad Campaigns of All Time

The 7 Most Expensive High Schools in the World

The 10 Electric Vehicles with the Longest Range

The 10 Cities with the Worst Drivers in the World

The 10 Most Expensive Dresses Ever Created

10 Islands to Visit Before You Die

10 Famous Celebrities Who Needed Rehab

The 15 Countries with the Largest Oil Reserves

The 10 Most Overused Excuses in the World

The 5 Best iOS Apps You Can’t Get on Android

5 Companies Damaged By Social Media Blunders

The 10 Most Legendary Blues Songs

The 10 Most Lawless Places in the World

4 Reasons China is a Threat to the US

The 17 Most Sugary Drinks in the World

The 10 Most Ruthless Rulers in History

The 10 Greatest Generals in History

Top 8 Travel Destinations for 2015

The 10 Safest Dog Breeds for Children

The 10 Most Stolen Vehicles in the US

The 7 Most Expensive Celebrity Weddings

The 10 Best LoL Teams in the World

Top 10 Worst Marketing Campaigns Ever Produced

Top 5 Diets that Help You Lose Weight

The 10 Best Ways to Stay Awake

7 Artists That Switched Musical Genres

The 10 Most Expensive Cities to Live in New Jersey

The 10 Best High Schools in New York

The 10 Countries With the Least Gender Inequality

The 6 Biggest Musician-Manager Feuds

The 10 Countries with the Cheapest Gas Prices

The 7 Most Theatrical Bands of All Time

The 8 Worst Band Breakups of All Time

The 10 Most Important South American Leaders

The 7 Most Successful Casting Show Winners

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!