Hedge Funds Lost A Bundle After URS Corp (URS) Large Drop

URS Corp (NYSE:URStook a hit today, dropping by almost 14%. There is an explanation today, but before we should take a look at another interesting point. In September 2013, at the Value Investing Congress, John Mirshekari of Fidelity Investments pitched this engineering company, saying, among other things, that it could gain 100% during the next two years. Since the VIC, the stock has dropped by around 20%, which is clearly not in line with the expectations.

Another bullish pick of Mr. Mirshekari’s presentation at the VIC was AECOM Technology Corp (NYSE:ACM), also an engineering company. Aecom edged down by 0.3% since September.

As we said, URS Corp (NYSE:URS) is one of the biggest losers today. The Motley Fool explains this movement as follows:

What: Shares of URS Corp (NYSE:URS) have fallen by 13% today after the company provided lousy preliminary results for its 2013 fiscal year. URS also disappointed investors with underwhelming guidance for 2014.

So what: URS Corp (NYSE:URS)’s preliminary 2013 report shows roughly $11 billion in revenue — at the low end of its $11 billion-$11.5 billion forecast and below analysts’ $11.15 billion projection — and a new range of $3.20-$3.30 in earnings per share…

Barry Rosenstein JANA PARTNERS

Here are some of the highlights from URS Corp (NYSE:URS)’s earnings release:

URS Corp (NYSE:URS) today announced preliminary financial results for fiscal 2013 ended January 3, 2014. The Company expects fiscal 2013 revenues to be approximately $11.0 billion. Fully diluted earnings per share are expected to be between $3.20 and $3.30. Cash flow from Operations for 2013 is expected to be approximately $600 million, and Cash EPS, non-GAAP, is expected to be between $4.16 and $4.26, on a fully diluted basis.

Some of the hedge funds tracked by Insider Monkey lost big today because of this move. Here are the top five hedge funds and their loss today, taking into account the data presented in their 13F filings for the end of September 2013.

1. Barry Rosenstein’s Jana Partners

Number of URS Corp shares: 7,408,455

Loss: More than $48 million.

2. Larry Robbins’s Glenview Capital

Number of URS Corp shares: 4,171,911

Loss: More than $27 million.

3. David Einhorn’s Greenlight Capital

Number of URS Corp shares: 1,113,879

Loss: More than $7 million.

4. Richard S. Pzena’s Pzena Investment Management

Number of URS Corp shares: 1,061,289

Loss: More than $6 million.

5. Cliff Asness’s AQR Capital Management

Number of URS Corp shares: 338,418

Loss: More than $2 million.

Disclosure: none

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