Springbok Capital’s Top Picks: General Motors Company (GM) and Constellium NV (CSTM)

Springbok Capital is a long/short equity hedge fund that employs a fundamental-value strategy. It was founded in 2004 –headquarter in New York- by Gavin Saitowitz, who used to be a portfolio manager at Jonathon Jacobson’s Highfields Capital, and Cisco del Valle, formerly a mergers-and-acquisitions specialist at Bank of America Corp (NYSE:BAC). Over the past ten years, Springbok Opportunity Fund has retrieved an average annual return of 14.6%. The firm’s current portfolio is worth more than $600 million.

A few days ago, Springbok Capital filed its 13F form for the fourth quarter of 2013, in which it discloses many of its long equity positions as of the end of December. Thus, in this article, I will briefly look into the fund´s biggest bets.

Although Springbok’s most valuable assets are ‘Put’ and ‘Call’ options (respectively) in SPDR S&P 500 ETF Trust (NYSEARCA:SPY) and SPDR Dow Jones Industrial Average ETF (NYSEARCA:DIA), we like to look at long stock holdings.

Leaving the options aside, the fund is most bullish on General Motors Company (NYSE:GM). The $58 billion market cap automaker escalated from the third position in Springbok’s list to the first one. The fund held, by the end of the fourth quarter, 162,800 shares of the company, worth more than $6 million. The stakes were raised by 9% over the quarter, and now comprise 1.09% of the fund´s portfolio. This move makes sense as the company looks on the right track to a full recovery. In fact, analysts expect it to deliver average annual EPS growth rates around 17%-18% over the next five years (versus an industry average of -2%), widely outperforming its peers. Moreover, other major funds, including Warren Buffett’s Berkshire Hathaway and David Einhorn’s Greenlight Capital, hold huge stakes in General Motors Company (NYSE:GM) – 40 million and 17 million shares, respectively. This kind of institutional sponsorship only supports Springbok’s and the analysts’ position.

General Motors Company (NYSE:GM)

Mr. Saitowitz and Mr. Del Valle’s fund showed a particularly bullish sentiment about Starwood Property Trust, Inc. (NYSE:STWD), a mortgage REIT with a market cap of approximately $4.7 billion. The fund upped its bets by more than 1,400%, and now owns nearly 171,700 shares of the company, valued at more than $4 million. The stock is already up more than 8% since the end of 2013 and is expected to continue on this track.

Constellium NV (NYSE:CSTM), came in third, after experiencing a 248% increase in Springbok’s stakes. As of the end of December, the fund declared to hold to 203,800 shares, valued at approximately $5.6 million. This $2.9 billion market cap aluminum products designer and manufacturer boasts narrow margins and returns, but is still loved by analysts. For instance, Morningstar expects the company to deliver an average annual EPS growth rate around 19% over the next five years.

With an industry-leading growth history, wide margins and a cheap valuation (13x P/E versus an industry mean of almost 20x), this stock certainly looks like a catch. Not only analysts and research firms love this company, but also hedge funds do. For instance, John Paulson’s Paulson & Co holds 25 million shares of the company.

Finally, we should highlight two other companies, in which Springbok has boosted its positions: Life Technologies Corp (NASDAQ:LIFE) and Halliburton Company (NYSE:HAL), two large-cap firms. The fund raised its bets on these companies by 133% and 207%, respectively, and now holds 61,900 and 118,700 shares in each of them. Israel Englander‘s Millennium Management, also holds a $77 million stake in Life Technologies and $90 million, worth of Halliburton Company shares.

Disclosure: Javier Hasse holds no position in any stocks mentioned

Recommended Reading:

Stephen Mandel’s Lone Pine Discloses 6.4% Stake in SouFun Holdings (SFUN)

Mario Gabelli is Bullish on Lawson Products Inc. (LAWS)

Robert Lynch and Aristeia Capital’s Oil & Gas and Financial Picks

 

Biotech Insider Alert - $6 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
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 Oldest Money Managers

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Best Travel Destinations in Australia

World’s Most Expensive Musical Instruments

World’s Most Famous Animals

Most Expensive Cakes in the World

Most Expensive Kosher Champagne in the World

Most Expensive Kosher Wine in the World

The Most Surprisingly Dark Fairy Tales

Most Popular Travel Destinations in Asia

The 10 Most Expensive Dresses Ever Worn to the Oscars

World’s Most Visited Art Museums

Best Countries for Photographers to Work in

Best Paid Jobs in the Film Industry

The Most Renowned Recovered Paintings Ever

Child Stars That Turned out Just Fine

Books That Were Banned in the Past Century

World’s Richest Dancers

Best Remedies against Bad Breath

Foods That Improve Your Skin Texture

Best-Selling Children’s Books of all Time

Foods That Boost Your Libido

Best-Selling Books of all Time

The Most Expensive Academy Awards Jewelry in History

Most Expensive Japanese Restaurant In New York City

The Best B-Boy Movies

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

Richest Doctors in the World

The Best Movie Sountracks Ever

The Highest Grossing Musicals on Broadway

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 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!