Arbiter Partners Registers Staggering Q3 Returns from Investments in Greif, Inc. (GEF), Other Stocks

Arbiter Partners Capital Management is a New York based investment fund founded by Paul J. Isaac in 2007. The firm invests in public equity and fixed income markets. Arbiter Partners has an equity portfolio worth $774.50 million as of the end of June and it posted a staggering return of 19.78% in the third quarter based on its long positions in 32 companies that have a market cap of $1 billion or more.

In a situation when hedge funds continue to face a massive outflow of money, it is important to focus on the correct data points to increase gains and make the right decisions to beat the market. Out of nearly 660 hedge funds tracked by Insider Monkey, about 95% posted positive returns during the third-quarter from their long positions.

Having said that, let’s find out the biggest positions of Arbiter Partners Capital Management, as reported in its 13F filings for the second quarter.

Arbiter Partners sold 35,805 shares of  Greif, Inc. (NYSE:GEF) in the second quarter and ended the period with 841,199 shares of the Ohio-based packaging company, which had a total value of $46.1 million. Greif, Inc.(NYSE:GEF)’s stock surged by 34.3% during the third quarter. At the end of the June quarter, a total of 21 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 24% from the previous quarter. Arbiter Partners Capital Management held the most valuable stake in Greif, Inc. (NYSE:GEF). On the second spot was GAMCO Investors which amassed $35.1 million worth of shares. Moreover, Royce & Associates, Millennium Management, and Gotham Asset Management were also bullish on Greif, Inc. (NYSE:GEF).

Arbiter Partners boosted its stake in Chicago Bridge & Iron Company N.V. (NYSE:CBI) by a whopping 32% in the second quarter. At the end of June, the fund held 660,000 shares valued at $22.86 million. Moreover, at the end of the second quarter, 30 funds tracked by Insider Monkey were long this stock, up by 20% over the quarter. Alyeska Investment Group, managed by Anand Parekh, held the biggest position in Chicago Bridge & Iron Company N.V. (NYSE:CBI), which was worth $59.8 million at the end of June. The second most bullish fund manager was Steve Cohen’s Point72 Asset Management holding a $45.9 million position. Some other members of the smart money that were bullish consisted of Dmitry Balyasny’s Balyasny Asset Management and Ken Griffin’s Citadel Investment Group.

Arbiter Partners reported ownership of 56,870 shares of First Citizens BancShares Inc. (NASDAQ:FCNCA) worth $14.72 million at the end of the second quarter. Heading into the third quarter, 11 funds followed by us held long positions in this stock, which represents an increase of 22% from the previous quarter. Among these funds, Royce & Associates held the most valuable stake in First Citizens BancShares Inc. (NASDAQ:FCNCA), which was worth $53.8 million. On the second spot was Huber Capital Management which amassed $39 worth of shares. Moreover, GMT Capital, and AQR Capital Management were also bullish on First Citizens BancShares Inc. (NASDAQ:FCNCA).

At the end of the second quarter, Arbiter Partners owned 368,491 shares of Miami-based construction company Lennar Corporation (NYSE:LEN.B); the stake was valued at $13.73 million. Our data shows that best stock pickers were getting less bullish on Lennar Corporation (NYSE:LEN), as Lennar was in 40 hedge funds’ equity portfolios at the end of June, down from 43 funds a quarter earlier. Capital Growth Management, led by Ken Heebner, amassed the largest stake in Lennar Corporation (NYSE:LEN), having reported a $252.6 million position. The second most bullish fund manager was Edgar Wachenheim of Greenhaven Associates, with a $221.2 million position. Other members of the smart money that are bullish comprise Ricky Sandler’s Eminence Capital, John Khoury’s Long Pond Capital, and Ross Margolies’s Stelliam Investment Management.

Disclosure: none