Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Allison Transmission Holdings Inc (ALSN) & Group Inc (WWWW): ValueAct Partners and Okumus Fund Management Continue to Buy These Stocks

Allison Transmission Holdings Inc (NYSE:ALSN) & Group Inc (NASDAQ:WWWW) are witnessing heavy buying from two different hedge funds that are adamant on increasing their stakes in the companies. As the latest filings with Securities and Exchange Commission show, Jeff Ubben’s  ValueAct Partners increased its stake in Allison Transmission Holdings Inc (NYSE:ALSN) on October 7, 8 and 9, by 275,000 shares at an average price of $27.75 per share, and Ahmet Okumus’ Okumus Fund Management bought 1,35,792 shares of Group Inc (NASDAQ:WWWW) on October 1, 8 and 9, at an average price of $18.86 per share. Following these transactions, ValueAct Partners now owns over 18.85 million shares of Allison Transmission Holdings Inc (NYSE:ALSN) and Okumus Fund Management owns a total of over 7.3 million shares in Group Inc (NASDAQ:WWWW).


ValueAct started building a stake in Allison Transmission Holdings Inc (NYSE:ALSN) in the last quarter of 2013. It bought over 18.025 million shares in that quarter and held on to it till the end of September 2014. Beginning October 1, the fund again started purchasing the stock of the company, buying 550,000 shares on October 1 at an average price of $28.31 per share. Though ValueAct hasn’t revealed any plans of going activist on Allison Transmission Holdings Inc (NYSE:ALSN), the Street is speculating if this sudden continuous increase in stake is actually a sign of that.

Allison Transmission Holdings Inc (NYSE:ALSN) has been doing quite well on the financial front as well. The company reported an EPS of $0.31 per share in the second quarter of 2014, compared to an EPS of $0.26 in the same period last year; its revenues were also up 4% year-on-year to $535 million. Apart from ValueAct, David Shaw’s firm, D.E. Shaw, and Jeffrey Gates’ Gates Capital Management are also bullish on the company. D.E. Shaw increased its stake by 28% to over 9.6 million shares and Gates Capital Management increased its stake by 48% to over 6.35 million shares during the second quarter of 2014.

Okumus Fund Management started buying shares of Group Inc (NASDAQ:WWWW) in the third quarter of 2014 and continues to do so. On September 30 too, the fund bought 76,266 shares at an average price of $19.99 per share. Okumus now owns over 13.9% of all the common stock of the company. Group Inc (NASDAQ:WWWW) has been facing pressure ever since the entry of Google Inc (NASDAQ:GOOGL) in the domain registration business was announced, it is currently down almost 40% year on year. However, the company has been strengthening its financials in the same period. It brought its net loss to $304,000 for the first half of 2014, compared to $56.25 million in the same period of 2013.

Craig C. Albert’s Sheffield Asset Management is another large shareholder of Group Inc (NASDAQ:WWWW), which as of June 30, 2014 owns over 2.1 million shares. Israel Englander’s Millennium Management is also bullish on Group Inc (NASDAQ:WWWW), during second quarter of 2014 it increased its stake by 1411% to over 306,000 shares.

 Disclosure: None

Warren Buffett and BillionairesFree Report: Warren Buffett and 12 Billionaires Are Crazy About These 7 Stocks

Let Warren Buffett, David Einhorn, George Soros, and David Tepper WORK FOR YOU. If you want to beat the low cost index funds by an average of 6 percentage points per year look no further than Warren Buffett’s stock picks. That’s the margin Buffett’s stock picks outperformed the market since 2008. In this free report, Insider Monkey’s market beating research team identified 7 stocks Warren Buffett and 12 other billionaires are crazy about. CLICK HERE NOW for all the details.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.