$800 Million Hedge Fund’s Big New Positions Include Delta Air Lines Inc. (DAL), MGM Resorts International (MGM) & More

In MGM Resorts International (NYSE:MGM), Selz Capital disclosed a new position containing 295,000 shares worth $9.61 million in its latest 13F filing. MGM Resorts International (NYSE:MGM)’s stock took a hit at the beginning of October after a mass shooting took place in Las Vegas near its Mandalay Bay hotel. However, analysts expect that the decline in the number of visitors to Las Vegas will be short-lived and MGM Resorts International (NYSE:MGM) won’t be affected significantly. In addition, the company is about to open its resort and casino in Cotai and is benefiting from gaming revenue growth in Macau.

Cott Corp (USA) (NYSE:COT) is another new position in Selz Capital’s equity portfolio, as the fund added 682,276 shares valued at $10.24 million between July and September. The stake was initiated as Cott Corp (USA) (NYSE:COT) agreed to sell its traditional manufacturing business to Refresco for $1.25 billion. The deal is expected to be closed by the end of the year. Cott Corp (USA) (NYSE:COT) expects that the sale will allow it to deleverage its business and to focus on its water, coffee, tea, and filtration businesses. The company also suggested that it might pursue more acquisitions in the space it plans to focus on.

In Altaba Inc (NASDAQ:AABA), the company that accounts for Yahoo!’s investments in Alibaba Group Holding Ltd (NYSE:BABA) and Yahoo Japan after Yahoo’s core business was sold to Verizon Communications Inc. (NYSE:VZ) earlier this year, Selz Capital initiated a $13.25 million stake during the third quarter, having amassed 200,000 shares. Altaba Inc (NASDAQ:AABA) is expected to unload its position in Yahoo Japan and other assets and sell its position in Alibaba Group Holding Ltd (NYSE:BABA) over the next couple of years, returning as much capital to shareholders as possible. At the end of July, Altaba Inc (NASDAQ:AABA) announced a $5 billion buyback. In June, JPMorgan analysts initiated coverage on Altaba Inc (NASDAQ:AABA) with an ‘Outperform’ rating and $65 price target, saying that the company’s stake in Alibaba could be worth $76.5 billion by the end of 2018.

SPX Corp (NYSE:SPXC) represents Selz Capital’s largest new position and its third-largest holding in terms of value as of the end of September. The fund acquired 899,093 shares valued at $26.38 million during the third quarter. SPX Corp (NYSE:SPXC) provides infrastructure equipment and solutions in HVAC and Detection & Measurement. SPX Corp (NYSE:SPXC)’s stock has gained 25% since the beginning of the year, as the company posted better-than-expected income for the past three quarters, but registered declines in quarterly revenue. In 2014, SPX Corp (NYSE:SPXC) decided to make some changes to its business, such as spinning-off its Flow Technology and Hydraulic Technologies businesses and some other segments.

Disclosure: None