10 Stocks Billionaire Leon Cooperman Just Bought and Sold

In this article, we discuss 10 Stocks billionaire Leon Cooperman just bought and sold.

Leon Cooperman established Omega Advisors in 1991, achieving an average annual return of 12.5% by focusing on undervalued stocks. At its peak, the fund managed over $10 billion, but its assets declined following SEC insider trading allegations in 2016 related to trades involving Atlas Pipeline Partners. Cooperman settled the case by paying $4.9 million without admitting any wrongdoing. Throughout the legal battle, the fund’s performance remained strong, and he closed it at its highest level. In an interview with Forbes, Cooperman attributed his success to hard work, luck, and intuition. He emphasized his value-oriented investment approach, influenced by investment legends like Warren Buffett, Benjamin Graham, and David Dodd. Cooperman’s strategy revolves around acquiring assets that offer more value than the price paid. As of November 20, 2023, Leon Cooperman’s net worth stands at $2.8 billion.

Billionaire investor Leon Cooperman maintains a bearish outlook and is not too keen on the overall stock market as of October 2023. He believes that the market is not fully recognizing the risks tied to a potential fiscal crisis. As the Chair and CEO of the Omega Family Office, Cooperman highlighted that the immense fiscal stimulus has accelerated demand, artificially shaping the economy. With the U.S. national debt exceeding $33 trillion for the first time, Cooperman’s long-term pessimism is evident. Instead of investing in the standard stock market measures, he is actively seeking good deals in individual stocks. He said:

“The market has been, as you know, extraordinarily bifurcated. If you take out the Magnificent 7, the overall market has done nothing and maybe it’s down a little bit or flat. I’m not interested in the S&P. I’m interested in individual stocks.”

Cooperman had similar views about the stock market in 2022. During the year, there was a significant increase in US Treasury yields. Despite this rise, Leon Cooperman believed that the yields remained lower than he had expected. He expressed his preference for investing in stocks rather than bonds, even though he foresaw a potential recession in 2023. He said in an interview with Bloomberg Television and Radio:

“I’d rather be in a common stock than I would be in a bond any day of the week, given the relative price of bonds versus equities. Equities are the best house in the financial asset neighborhood.”

Even so, he believed that equities still had potential to decrease in value. He predicted a recession in 2023, estimating that the S&P 500 index could drop to a level approximately 35% to 40% lower than its peak, which was around 4,800 points.

Cooperman outlined several potential reasons that might steer the US economy towards a recession. These factors included the Federal Reserve’s campaign of quantitative tightening, the escalating oil prices, and fluctuations in the US dollar’s value. As per a Markets Insider report from September 2023, Cooperman noted that these factors have thus far remained relatively controlled, contributing to the strong performance of the markets in the past few quarters. Initially, decreases in oil prices and a weakening dollar were considered beneficial for the economy, boosting investor confidence. However, Cooperman warned against relying on continued market strength, expressing his belief that the price of the S&P is too high, and the equity risk premium is too low.

When Fox Business anchor Liz Claman mentioned Congress and President Joe Biden’s apparent lack of focus on addressing the deficit, Leon Cooperman pointed out that both political parties had contributed to creating the deficit and emphasized the urgent need to address it now. He described the situation in the U.S. as a “guns or butter” scenario, referring to the government’s choice between investing in national defense or domestic programs. Cooperman expressed concern that this policy dilemma might lead to increased inflation, which he believes could have a negative impact on the stock market. He stated:

“When Donald Trump was president, he was running a trillion dollar deficit and the economy was fully employed. Biden has made it worse because of economic circumstances and what’s going on with two wars.”

Cooperman observed that the upcoming year might bring more challenges for stock market investors. A potential recession could cause stock values to decline, making it harder for investors to profit. Additionally, this situation might increase the unpredictability of the stock market, posing challenges for active investors. However, he sees a silver lining as it could create chances for value investors to purchase shares of reputable companies at reduced prices.

In this article, we discuss the stocks that Leon Cooperman bought and sold in the third quarter of 2023. Some of his recent buys include WillScot Mobile Mini Holdings Corp. (NASDAQ:WSC), Manchester United plc (NYSE:MANU), and Elevance Health, Inc. (NYSE:ELV).

Our Methodology

We reviewed the Q3 2023 portfolio of Leon Cooperman’s Omega Advisors and mentioned his recent buys and sells. We have assessed the hedge fund sentiment toward each stock from Insider Monkey’s database of 910 elite hedge funds tracked as of the end of the second quarter of 2023.

Stocks Billionaire Leon Cooperman Just Bought and Sold

10. Virgin Orbit Holdings Inc

Percentage of Stake Discarded: 100%

Virgin Orbit Holdings Inc, a part of the Virgin Group, offered launch services designed for small satellites. The company was established in 2017. In Q2 2023, Leon Cooperman held 157,978 shares of the stock worth $5,095. His stake was discarded entirely in Q3 2023 as the company went bankrupt and ceased its operations. The company is not listed on the stock exchange anymore.

As reported by Reuters, Richard Branson’s satellite launch company, Virgin Orbit Holdings Inc, announced on May 23 that it would permanently shut down. This decision came after the company sold assets amounting to $36.4 million, which included a deal to sell most of its headquarters in Long Beach, California, to Rocket Lab USA, Inc. (NASDAQ:RKLB), a small-launch company. 

Las Vegas Sands Corp. (NYSE:LVS), Manchester United plc (NYSE:MANU), and Fidelis Insurance Holdings Limited (NYSE:FIHL) were among the stocks Leon Cooperman bought in the third quarter of 2023, while Virgin Orbit Holdings Inc was one of the stocks he discarded entirely.

 9. Chimera Investment Corporation (NYSE:CIM)

Percentage of Stake Discarded: 100%

Chimera Investment Corporation (NYSE:CIM) is a real estate investment trust based in the United States. It invests in different mortgage assets, such as residential mortgage loans, securities linked to residential mortgages, commercial mortgage loan pools secured by agency mortgage-backed securities, as well as other real estate-related securities. Additionally, the company diversifies its investments across different credit ratings, including investment grade, non-investment grade, and non-rated classes. During the second quarter of 2023, Leon Cooperman held 30,834 shares of the stock valued at $625,622. He discarded his stake completely in the third quarter.

On November 2, Chimera Investment Corporation (NYSE:CIM) announced a Q3 non-GAAP EPS of $0.13 and a revenue of $63.40 million, falling short of Wall Street estimates by $0.06 and $14.25 million, respectively.

According to Insider Monkey’s second quarter database, 13 hedge funds were bullish on Chimera Investment Corporation (NYSE:CIM), same as the prior quarter. Ken Griffin’s Citadel Investment Group held the top position in the company, with 2.5 million shares valued at $14.49 million.

8. Warner Bros. Discovery, Inc. (NASDAQ:WBD)

Percentage of Stake Discarded: 100%

Warner Bros. Discovery, Inc. (NASDAQ:WBD) is a global media and entertainment company. It operates through three segments – Studios, Network, and DTC. The Studios section focuses on producing and releasing feature films for initial screenings in theaters. It also creates and licenses TV programs to other networks and streaming platforms. Additionally, this segment handles the distribution of films and TV shows to different platforms, including internal television, streaming services, home entertainment, themed experiences, and interactive gaming. The Network segment covers both domestic and international television markets, offering a range of content. The DTC segment is involved in providing premium pay-TV and streaming services to consumers. In the second quarter of 2023, Cooperman owned 200,000 shares of the stock worth $2.51 million. However, he discarded his stake entirely in the third quarter of 2023.

On November 8, Warner Bros. Discovery, Inc. (NASDAQ:WBD) announced a Q3 GAAP EPS of -$0.17, falling short of Wall Street estimates by $0.08. Its revenue came in at $9.97 billion, beating market consensus by $10 million. Warner Bros. Discovery, Inc. (NASDAQ:WBD) experienced more than 15% drop in its stock value during early trading, following the company’s mixed third quarter results. For the quarter ending September 30, Warner Bros. Discovery, Inc. (NASDAQ:WBD) reported a loss of 17 cents per share with sales amounting to $9.98 billion. The decline in TV revenue was linked to reduced earnings from licensing agreements and the strike involving actors.

According to Insider Monkey’s second quarter database, 67 hedge funds were bullish on Warner Bros. Discovery, Inc. (NASDAQ:WBD), compared to the previous quarter when 63 funds had invested in the stock.

While Las Vegas Sands Corp. (NYSE:LVS), Manchester United plc (NYSE:MANU), and Fidelis Insurance Holdings Limited (NYSE:FIHL) were among his buys, Warner Bros. Discovery, Inc. (NASDAQ:WBD) was one of the stocks Leon Cooperman sold in Q3 2023.

Longleaf Partners Fund made the following comment about Warner Bros. Discovery, Inc. (NASDAQ:WBD) in its Q2 2023 investor letter:

“Warner Bros. Discovery, Inc. (NASDAQ:WBD) – Media conglomerate Warner Bros Discovery was the top detractor in the quarter but remained a top contributor for the first half. After a strong first quarter, the stock price faltered in the face of near-term uncertainty around the re-launch of streaming service Max. Additionally, the big budget movie The Flash has not been a success. Finally, there was well-publicized drama around CNN management, with CNN CEO Chris Licht leaving the company after only one year, which we believe was a positive resolution. The company remains dramatically undervalued today, and management continues to make positive operational progress to drive free cash flow (FCF) growth. We believe this company has seen the worst so will be less leveraged and more strategically positioned in the quarters and years to come. Its underlying holdings are high quality businesses that will drive FCF per share growth while also being attractive acquisition candidates.”

7. Madison Square Garden Sports Corp. (NYSE:MSGS)

Omega Advisors’ Stake Value: $3.53 million

Madison Square Garden Sports Corp. (NYSE:MSGS) is an American professional sports company. They possess and manage a collection of assets that include the New York Knickerbockers in the NBA and the New York Rangers in the NHL. The company is also involved in esports, owning Knicks Gaming, a team competing in the NBA 2K League, and holding a major stake in Counter Logic Gaming, a prominent esports organization based in North America. Madison Square Garden Sports Corp. (NYSE:MSGS) is a new position in Leon Cooperman’s Q3 2023 portfolio. The billionaire purchased 20,000 shares valued at approximately $3.53 million during the September quarter.

On November 2, Madison Square Garden Sports Corp. (NYSE:MSGS) reported first quarter results for fiscal year 2024. The company announced a GAAP EPS of -$0.79 and a revenue of $43.05 million, exceeding market estimates by $0.59 and $18.08 million, respectively.

According to Insider Monkey’s second quarter database, 43 hedge funds were bullish on Madison Square Garden Sports Corp. (NYSE:MSGS), an increase from 38 funds in the previous quarter. Jim Davidson, Dave Roux, and Glenn Hutchins’ Silver Lake Partners is the largest shareholder of the company, with 1.9 million shares worth $357.29 million.

Ariel Small/Mid Cap Value Strategy made the following comment about Madison Square Garden Sports Corp. (NYSE:MSGS) in its Q4 2022 investor letter:

“Additionally, pure-play professional sports content company, Madison Square Garden Sports Corp. (NYSE:MSGS) rebounded following the recent sale of the Phoenix Suns (NBA). This recent share appreciation suggests MSGS’ franchises could realize outsized returns due to the prominence of the New York Knicks (NBA) and the New York Rangers (NHL) in the largest U.S. market, particularly given high demand and the large premiums other sports franchises have traded at.”

6. Fidelis Insurance Holdings Limited (NYSE:FIHL)

Omega Advisors’ Stake Value: $13.39 million

Fidelis Insurance Holdings Limited (NYSE:FIHL) offers insurance and reinsurance products across Bermuda, Ireland, and the United Kingdom. The company operates through three segments – Specialty, Reinsurance, and Bespoke. In the Specialty division, Fidelis Insurance Holdings Limited (NYSE:FIHL) provides specialized risk solutions such as aviation, energy, marine, property direct and facultative, and other unique risk coverages. Their Reinsurance segment focuses on offering solutions for property, retrocession, and overall reinsurance needs. The Bespoke segment tailors customized risk solutions, including credit, political risk, and other personalized risk transfer options, specifically designed to meet clients’ needs. Leon Cooperman added Fidelis Insurance Holdings Limited (NYSE:FIHL) to his portfolio in Q3 2023. The position consisted of 911,791 shares worth $13.39 million.

On August 22, Fidelis Insurance Holdings Limited (NYSE:FIHL) reported a Q2 GAAP EPS of $0.76, outperforming estimates by $0.26. However, the company earned net premiums of $429.1 million, falling short of market consensus by $31.3 million.

According to Insider Monkey’s second quarter database, 15 hedge funds were bullish on Fidelis Insurance Holdings Limited (NYSE:FIHL).

Like WillScot Mobile Mini Holdings Corp. (NASDAQ:WSC), Manchester United plc (NYSE:MANU), and Elevance Health, Inc. (NYSE:ELV), Fidelis Insurance Holdings Limited (NYSE:FIHL) is among the stocks Leon Cooperman bought in Q3 2023.

5. Manchester United plc (NYSE:MANU)

Omega Advisors’ Stake Value: $18.39 million

Manchester United plc (NYSE:MANU) is the owner and operator of the Manchester United Football Club – a professional sports team based in the United Kingdom. The company focuses on building marketing and sponsorship partnerships with international and regional businesses to enhance its brand recognition. Additionally, it engages in the marketing and sale of sports apparel, training gear, leisurewear, and other licensed products. Leon Cooperman added Manchester United plc (NYSE:MANU) to his portfolio in Q3 2023, taking up a stake of 929,078 shares worth $18.39 million.

On November 17, the stock of Manchester United plc (NYSE:MANU) rose 6% following news suggesting that British billionaire Jim Ratcliffe is nearing an agreement to purchase a portion of the renowned soccer club at approximately $33 per share.

According to Insider Monkey’s second quarter database, 28 hedge funds were bullish on Manchester United plc (NYSE:MANU), compared to 32 funds in the previous quarter. John W. Rogers’ Ariel Investments held the largest position in the company, with approximately 6.5 million shares worth $158.4 million.

Here is what Baron Focused Growth Fund has to say about Manchester United PLC (NYSE:MANU) in its Q1 2023 investor letter:

“Manchester United plc (NYSE:MANU) is the best-known team in the English Premier League and generates revenue from broadcasting, sponsorship, and licensing. Shares were down this quarter on uncertainty around the possibility and timing of Manchester United’s potential sale following the news in late 2022 that the club was exploring strategic alternatives. We retain conviction and continue to monitor bids and owner demands, with recent transactions of similar clubs suggesting that the stock is comparatively undervalued. In our view, Manchester United is a unique media company with over 1.1 billion fans globally and broad appeal that should compound value over the long term.”

4. DT Midstream, Inc. (NYSE:DTM)

Omega Advisors’ Stake Value: $28.05 million

DT Midstream, Inc. (NYSE:DTM) provides a range of natural gas services in the United States. Operating through two divisions, Pipeline and Gathering, the company develops, owns, and manages an integrated collection of interstate and intrastate pipelines, storage systems, lateral pipelines, gathering systems, treatment plants, compression facilities, and surface facilities. In the third quarter of 2023, Cooperman upped his stake in DT Midstream, Inc. (NYSE:DTM) by 77%. The position comprised 530,000 shares valued at $28.05 million.

On November 1, DT Midstream, Inc. (NYSE:DTM) declared a $0.69 per share quarterly dividend, in-line with previous. The dividend is to be paid on January 15, 2024 to shareholders of record as of December 18.

As per Insider Monkey’s second quarter database, 19 hedge funds were bullish on DT Midstream, Inc. (NYSE:DTM), same as the last quarter. Amy Minella’s Cardinal Capital is the largest position holder in the company, with 1.84 million shares worth approximately $91.3 million.

3. Las Vegas Sands Corp. (NYSE:LVS)

Omega Advisors’ Stake Value: $45.84 million

Las Vegas Sands Corp. (NYSE:LVS) creates, owns, and manages integrated resorts located in Macao and Singapore. Their properties include The Venetian Macao Resort Hotel, the Londoner Macao, The Parisian Macao, The Plaza Macao, Four Seasons Hotel Macao, Cotai Strip in Macao, and Marina Bay Sands in Singapore. These resorts offer a variety of features such as lodging, gaming, entertainment, shopping areas, spaces for conventions and exhibitions, and restaurants from renowned chefs. Leon Cooperman added Las Vegas Sands Corp. (NYSE:LVS) to his portfolio in Q3 2023 by purchasing 1 million shares for a value of $45.84 million.

On November 3, Las Vegas Sands Corp. (NYSE:LVS) declared a $0.20 per share quarterly dividend. The dividend was paid on November 15 to shareholders of record as of November 7.

As per Insider Monkey’s second quarter database, 52 hedge funds were bullish on Las Vegas Sands Corp. (NYSE:LVS), up from 50 funds in the preceding quarter. Steve Cohen’s Point72 Asset Management held a significant position in the company, with 2.43 million shares valued at $140.68 million.

Baron Real Estate Fund made the following comment about Las Vegas Sands Corp. (NYSE:LVS) in its first quarter 2023 investor letter:

“In the first quarter of 2023, we re-acquired shares in Macau-centric casino gaming companies Wynn Resorts, Limited and Las Vegas Sands Corp. (NYSE:LVS) with the following considerations in mind:

Since the early days of the COVID-19 pandemic in 2020 through mid-2022, the shares of Wynn and Las Vegas Sands significantly underperformed the share price performance of other U.S.-centric casino gaming and lodging companies due in large part to extremely limited travel mobility to Macau during China’s Zero-COVID policy. Just as business activity and the shares of U.S.-centric casino gaming companies rebounded sharply once people felt comfortable to travel to Las Vegas and other U.S. regional gaming markets, we have felt that Macau business activity and the shares of Macau-centric casino gaming companies would follow in the footsteps of Las Vegas-centric and other U.S. gaming and lodging companies and inflect positively once people were permitted to travel to Macau more freely.

China recently abandoned it’s Zero-COVID policy and removed travel restrictions in January 2023. We now believe both Wynn and Las Vegas Sands are well positioned to capitalize on China’s reopening.

For Las Vegas Sands, we believe additional drivers for future value creation beyond a re-emergence in Macau business activity include: (i) our expectation for a continued positive inflection in visitation and cash flow at Marina Bay Sands, Singapore; (ii) Las Vegas Sands’ plans to invest $4.5 billion in Macau and Singapore in the next 10 years; (iii) the company’s plans to pursue a New York casino and its prioritization of Texas as a new market; and (iv) the possibility that Las Vegas Sands reinstates its dividend in the next few years…”

2. Elevance Health, Inc. (NYSE:ELV)

Omega Advisors’ Stake Value: $51.44 million

Elevance Health, Inc. (NYSE:ELV) functions as a health benefits firm that offers different services. The company is divided into four segments – Commercial & Specialty Business, Government Business, CarelonRx, and Other. Its primary focus is assisting individuals, families, and communities throughout their healthcare journey by providing access to care, support, and resources for healthier living. Elevance Health, Inc. (NYSE:ELV) delivers a range of medical, digital, pharmacy, behavioral, clinical, and care solutions to serve people’s needs. Leon Cooperman increased his Elevance Health, Inc. (NYSE:ELV) stake by 97% in Q3 2023 by purchasing 118,140 shares worth $51.44 million.

On October 18, Elevance Health, Inc. (NYSE:ELV) declared a $1.48 per share quarterly dividend, in-line with previous. It is to be paid on December 21 to shareholders of record as of December 6.

According to Insider Monkey’s second quarter database, 82 hedge funds were bullish on Elevance Health, Inc. (NYSE:ELV), compared to 81 in the prior quarter. Jean-Marie Eveillard’s First Eagle Investment Management is the largest shareholder of the company, with 1.8 million shares worth $802 million.

ClearBridge Large Cap Value Strategy made the following comment about Elevance Health, Inc. (NYSE:ELV) in its Q3 2023 investor letter:

“Our health care positioning also fared well. We continue to maintain an overweight position to managed care companies via long-term holdings in UnitedHealth and Elevance Health, Inc. (NYSE:ELV), as we believe the short cycle nature of their insurance franchises allows them to reprice their book of business in a relatively short time frame, even if health care costs come in higher than previously anticipated.”

1. WillScot Mobile Mini Holdings Corp. (NASDAQ:WSC)

Omega Advisors’ Stake Value: $113.33 million

WillScot Mobile Mini Holdings Corp. (NASDAQ:WSC) provides portable workspace and storage solutions across the United States, Canada, and Mexico. Divided into two segments, Modular Solutions and Storage Solutions, the company leases out modular spaces and portable storage units to a range of customers. These customers belong to industries such as commercial, construction, retail, education, energy, government, and healthcare. In Q3 2023, Leon Cooperman upped his stake in WillScot Mobile Mini Holdings Corp. (NASDAQ:WSC) by 22%. The position consists of approximately 2.73 million shares valued at $113.33 million.

On November 1, WillScot Mobile Mini Holdings Corp. (NASDAQ:WSC) announced a Q3 GAAP EPS of $0.46, outperforming market consensus by $0.01. However, its revenue came in at $605 million, missing Street estimates by $7.51 million.

According to Insider Monkey’s second quarter database, 59 hedge funds were bullish on WillScot Mobile Mini Holdings Corp. (NASDAQ:WSC), same as the preceding quarter.

Bernzott Capital Advisors US Small Cap Value Fund made the following comment about WillScot Mobile Mini Holdings Corp. (NASDAQ:WSC) in its Q1 2023 investor letter:

“WillScot Mobile Mini Holdings Corp. (NASDAQ:WSC): Exited the position as a result of the company exceeding the upper end of our market cap restrictions due to stock appreciation.

We ended 1Q managing $548 million, with $286 million in our US Small Cap Value strategy. As a bottom-up, fundamental value investor, we seek high-quality companies we believe can compound returns over long periods while proving resilient in downturns. We believe characteristics of a high-quality company include market leadership; recurring revenue or subscription model providing revenue visibility; high margins and operating leverage; high returns on capital; financial flexibility; and a strong management team with skin in the game and a long-term view.”

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Disclosure: None. 10 Stocks Billionaire Leon Cooperman Just Bought and Sold is originally published on Insider Monkey.