News Corp (NWSA), Capital One Among Dan Loeb’s Big Selloffs

Page 1 of 2

THIRD POINTBillionaire Daniel Loeb has over $4 billion of AUM and founded his New York-based hedge fund Third Point Management in 1995 with just over $3 million. Loeb graduated from Columbia University in 1983 and worked at Jefferies & Company and Citibank before starting Third Point. Loeb is considered an activist investor that takes out-sized positions in his investments. In reviewing Loeb’s latest 13F filing with the SEC, we found five stocks his fund sold off last quarter (check out Dan Loeb’s newest picks).

Aetna Inc. (NYSE:AET) is a diversified healthcare benefits company that is expected to see revenues up 9% in 2013. Main revenue drivers include the expansion of Medicaid and contract victories. Also helping drive longer-term growth is the acquisition of Coventry Health, which will increase Aetna’s geographic presence in the Medicaid and Medicare markets. The healthcare company expects Coventry to add $0.45 and $0.90 to EPS in 2014 and 2015, respectively. With a healthy cash position of over $600 million, Aetna should manage to continue paying its 1.75% dividend yield – a $270 million total dividend payout. We believe the selloff could have been Loeb taking some profits, as the healthcare stock is up 20% over the last six months. Billionaire David Einhorn is still one of Aetna’s big backers with over 4 million shares invested (check out David Einhorn’s key picks).

Advance Auto Parts, Inc. (NYSE:AAP) is the auto parts retailer that has reportedly been exploring the sale of itself to private equity firms. Notable competitor Pep Boys was up 30% earlier this year on reports of a private equity buyout, but later tumbled when the PE firm pulled out of the deal. Advance is expected to see sales up 4% in 2013 on the back of a net increase in 150 stores. Helping drive the revenue growth for Advance will be the aging of vehicles and challenging economic conditions limiting the purchase of new cars. Advance still trades well below its peers on a P/E basis at 13x, compared to Pep Boys (22x), O’Reilly (19x) and AutoZone (14x). Billionaire Jim Simons upped his stake in Advance by 30% last quarter (check out Jim Simons’ top picks).

News Corp (NASDAQ:NWSA) is one of the most loved media stocks by hedge funds and is trading at the high end of the industry. The media company trades at 23x earnings, compared to Disney at 16x and Comcast at 17x. Revenues are expected to be up 2% in FY2013 and 4.4% in FY2014 thanks to growth in advertising revenues. The key factor that pushed the stock up close to 35% in 2012 is the expected breakup of News Corp into separate entertainment and publishing companies. The entertainment business should provide solid revenue via digital content. Ken Griffin – founder of Citadel Investment Group – is one of News Corp’s top-name investors (check out Ken Griffin’s newest picks).

The other two are…

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

Foods That Stain Your Teeth

Richest Doctors in the World

The Best Movie Sountracks Ever

The Highest Grossing Musicals on Broadway

The Most Successful Reality TV Stars

Cheapest Cities to Visit in the US

Most Expensive Summer Camps

Most Expensive Animals in the World

Most Expensive Specialty Crops in the World

Movies That Took Ages to Make

The Longest Hollywood Films Ever Made

Most Expensive Concert Stages

The Richest Bands of all Time

10 Most Corrupt Countries 2013 List

10 Countries with the Highest Quality of Life Index

Most Expensive Mattresses in the World

5 Smallest Countries by Land Area

The Ultimate Heartbreak Songs

Richest Teenagers in the World

10 Most Haunted Places in America

10 Best Places to Retire in Florida East Coast

Top 10 Places to See Before You Die

Top 8 Countries in the World Where Justice Prevails

10 Richest States in America

15 Wealthiest Countries in the World

Richest Singers in the World

Most Expensive Tasting Menu in New York City

Most Expensive Baby Items in the World

Most Expensive Hotel Suites in Vegas

Most Expensive Brunch in New York City

Most Expensive Beef Cuts in the World

25 Best Colleges to Get a Job

Top 10 US Supermarkets

The 25 Most Dangerous Cities in the World to Visit

Most Expensive Xbox Games

Top 11 Cities Where Billionaires Live

Top 10 Most Charitable Companies in America

Most Expensive Seafood in the World

The 10 Wildest Conspiracy Theories

The 10 Best Job Markets in the US

Top 10 Accounting Scandals of All Time

The 25 Biggest Cities in the World

Top 10 Best Paying Virtual Jobs

Most Expensive Leather Shoes in the World

Top 6 Things to Buy in March

The 10 Most Stressful Jobs in America – 2014 List

Top 10 Jobs for Introverted People

Top 10 Honeymoon Destinations in the World

Top 10 Highest Paying Jobs in the World

Most Expensive Day-Care in New York City

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!