What Hedge Funds Thought Of These Q3 IPOs

#3 SPX Flow Inc. (NYSE:FLOW)

-Investors with Long Positions (as of September 30): 24

-Aggregate Value of Investors’ Holdings (as of September 30): $172.31 million

SPX Flow Inc. (NYSE:FLOW) was owned by SPX Corporation (NYSE:SPXC) until September 26, when the latter distributed SPX Flow’s outstanding common stock to the shareholders of SPX Corporation via a spin-off transaction in an attempt to narrow the focus of the company. SPX Flow operates as a global supplier of highly-specialized, engineered solutions, mainly operating in three segments: Food and Beverage, Power and Energy, and Industrial. 24 hedge funds within our database had stakes in SPX Flow at the end of the September quarter, stockpiling 12.20% of its outstanding common stock. Meanwhile, the stock is nearly 3% in the red since the spin-off, mainly owing to the low oil-price environment, the strong U.S dollar, and the slowing global economy. Steve Cohen’s Point72 Asset Management owns 915,200 shares of SPX Flow Inc. (NYSE:FLOW) as of September 30.

#2 Kraft Heinz Co (NASDAQ:KHC)

-Investors with Long Positions (as of September 30): 56

-Aggregate Value of Investors’ Holdings (as of September 30): $25.99 Billion

Earlier this year, Warren Buffett’s Berkshire Hathaway and 3G Capital teamed up to create a food behemoth by merging H.J. Heinz Co. and The Kraft Foods Group. In July, the third-largest food and beverage company kicked off trading on the NASDAQ Stock Market, after successfully completing the merger. A total of 56 hedge fund firms were invested in the company at the end of the third quarter, and they collectively owned 30.40% of the company’s shares at that time. Some market participants and analysts are concerned that the freshly-created giant will have a hard time improving its top-line, as some of its brands have been struggling in recent years. Even so, Kraft Heinz anticipates generating around $1.5 billion in annual cost synergies, which could eventually be used to expand those struggling brands into new markets. Warren Buffett holds a 325.63 million-share stake in Kraft Heinz Co (NASDAQ:KHC) as of September 30.

#1 Paypal Holdings Inc. (NASDAQ:PYPL)

-Investors with Long Positions (as of September 30): 87

-Aggregate Value of Investors’ Holdings (as of September 30): $4.94 Billion

On July 17, Paypal Holdings Inc. (NASDAQ:PYPL) became an independent publicly-traded company via the pro rata distribution by eBay Inc. (NASDAQ:EBAY) of all PayPal’s outstanding stock to eBay shareholders. Clearly, the technology platform company that enables digital payments has received strong investor interest following the aforementioned spin-off. It is widely known that mobile devices are used more frequently for e-commerce payments, which propelled PayPal to acquire Paydiant in April for $230 million in an all-cash deal. PayPal’s ability to differentiate its business and accurately identify the trends within its industry will allow the digital payment company to maintain its leading position. The number of smart money investors with positions in PayPal at the end of the latest quarter stood at 87, accumulating 13.10% of its outstanding common stock. Carl Icahn of Icahn Capital LP owned 46.27 million shares of Paypal Holdings Inc. (NASDAQ:PYPL) at the end of September.

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