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Billionaire Englander’s Catapult Capital Bought These Stocks: ADT Corp (ADT), Westlake Chemical Corporation (WLK), Methanex Corporation (USA) (MEOH)

MILLENNIUM MANAGEMENTThe recent dissemination of the hedge fund industry’s 13F filings has allowed us to perform due diligence of over 400 funds’ holdings for the fourth quarter of last year. Despite the delay in reporting compared to when these new purchases where actually made, the retail investor can often realize a better entry, given that hedge funds are known to build positions too early. Our research has led us to the finding that the most popular small-caps amongst big money managers can lead to extraordinary gains; our proprietary basket is up over 36% since last September alone (read more here). Israel Englander is a founding member of Millennium Management and runs a $200mm subsidiary fund known as Catapult Capital Management; Catapult’s largest new initiations are outlined below.

ADT Corp (NYSE:ADT) took the top spot out of the 93 new purchases made, garnering a $3.5mm investment from Catapult. The fund wasn’t the only one to add ADT to its portfolio in the last quarter of 2012; it was one of the most popular new additions amongst the funds we track, with 57 claiming ownership in the fourth quarter. This reception is for good reason, as ADT is a significant leader in the home and small-business security market, assuming a quarter of the market share. ADT Corp (NYSE:ADT)’s latest quarterly report came at the end of January, outlining increases in net earnings, revenues from monitoring services, and operating margin. Steven Cohen of SAC Capital Advisors has over $13mm invested in ADT (read about the billionaire’s portfolio here).

Westlake Chemical Corporation (NYSE:WLK) was a huge winner for investors who bought in this time last year, up over 50% in the past twelve months. Catapult dedicated $60,000 less than ADT to WLK, but it still amounted to 1.75% of the fund’s AUM. The chemical manufacturer continues its trend of impressing on earnings (including a 13% beat last month) and has earned upgrades from UBS and JP Morgan since the start of this year. The start of March brought an announcement that WLK has agreed to acquire Compagnie de Saint-Gobain’s PVC pipe, fittings, and foundations business for $175M, giving Westlake Chemical Corporation (NYSE:WLK) an expanded presence in California and Kansas. Billionaire Glenn Russell Dubin of Highbridge Capital Management bought over half a million shares last quarter (take a look at the fund’s full holdings here).

OM Group, Inc. (NYSE:OMG) received slightly over $3.1mm from Catapult. The industrial growth company is well-diversified in many segments, including automotive, aerospace, and renewable energy. OMG also saw increased attention from hedge funds in Q4 2012, with interest almost doubling in terms of the number of funds who owned the stock compared to the third quarter. The start of this year saw a sale by OMG of its advanced materials business for $325mm; according to the company, it will help OMG realize its strategy of shifting towards more tech-based businesses with higher growth. D. E. Shaw owns more than 250,000 shares of the stock (check out the fund’s other positions here).

Which other stocks made it into Catapult’s portfolio?

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