Billionaire Leon Cooperman Desperately Clutching Onto eBay Inc (EBAY), Citigroup Inc (C), Actavis plc (ACT) and Apple Inc. (AAPL) To Dig Himself Out Of the Hole in 2015

Leon Cooperman‘s Omega Advisors has had a tough year, as overexposure to some energy stocks led to a 2.13% decline for the year. The market value of the fund also decreased from $6.79 billion to just under $6.0 billion in the fourth quarter alone, a drop of over 11.8%, according to figures revealed through the fund’s latest 13F filing. On a yearly basis, the fund saw its market value dip from $7.54 billion at the start of the year, which puts the annual drop in fund’s value at nearly 20%.

Leon Cooperman Omega Advisors

Leon Cooperman founded Omega Advisors in 1991 after an illustrious career spanning 25 years at Goldman Sachs. At the time of his retirement, he was CEO of Goldman Sachs Asset Management. The fund currently has about $12.65 billion worth of regulatory assets under management. The fund’s major industry focus continues to be finance, with 28.4% of the fund’s equity allocated to this sector at the end of 2014. Cooperman is no alien to being an underdog and then staging a comeback to steal the show at the end. Being the son of a plumber in South Bronx didn’t stop him from pursuing an MBA from Columbia Business School.

Omega’s abysmal year will hardly cast a dent in his confidence, and he has already in all likelihood brushed off the disappointment from last year and put his stock picking skills to work, with his trust laying in eBay Inc (NASDAQ:EBAY), Citigroup Inc (NYSE:C), Actavis plc (NYSE:ACT) and Apple Inc. (NASDAQ:AAPL) for early 2015, according to the latest filing.

eBay Inc (NASDAQ:EBAY) saw its stake rise in Omega’s portfolio, as Cooperman added 375,200 shares of the technology company in the fourth quarter. The company’s $198.08 million stake now represents 3.38% of Omega’s portfolio value. eBay plans to spin-off its PayPal business later this year, which is seen in a positive light by many investors. Carl Icahn of Icahn Enterprises had urged the company to make this move in February last year but CEO John Donahoe had fought him on it at the time. However, the tide has changed now and Donahoe plans to step down from his post after the spin-off is complete.

eBay, PayPal, is EBAY a good stock to buy, Leigh Drogen,

eBay Inc (NASDAQ:EBAY) reported a fourth quarter revenue increase of 9% to $4.92 billion. This brought the non-GAAP adjusted income to $3.72 billion for the year, up about 5% from $3.56 billion in 2013. The fundamentals of the company look solid going into 2015.

Cooperman’s Citigroup Inc (NYSE:C) holding was slashed by 17%, as he sold 915,200 shares during the fourth quarter. The financial services holding company still forms a significant part of Cooperman’s portfolio at 3.94%, with the stake valued at nearly $229.72 million. Robert Hockett’s Covalent Capital Partners and David Tepper’s Appaloosa Management have also shed stakes in Citigroup after considering the litigation charges that are weighing heavily on the company’s financials.

Largest Financial Services Companies

Trading at a forward earnings multiple of 8.86, Citigroup Inc (NYSE:C) also has investors on its side that deem the stock cheap. Dan Loeb of Third Point is one such hedge fund manager, who has initiated a new position in Citi by purchasing 5.0 million shares.

Cooperman increased his investment fund’s exposure in Actavis plc (NYSE:ACT) by a staggering 33% by purchasing an additional 237,100 shares. The stake which is now valued at $242.89 million forms about 4.15% of value of his portfolio, and is the most valuable position he holds.

actavis-logo

Actavis plc (NYSE:ACT) acquired the Botox maker Allergan, Inc.(NYSE:AGN) last year for $66 billion which has given its product a monopoly of sorts in the medical field of ophthalmology and aesthetic treatments. Botox is also becoming popular for therapeutic uses, and since there are significant entry barriers in terms of both finances and complexity in manufacturing Botox, Actavis looks set to rake in significant revenues from its newly acquired product in the future.

Actavis is up nearly 11.6% year to date, and is currently trading at a forward earnings multiple of 17.26. The company’s stock recently reached its all time high, which will definitely help the company’s management as it heads into the announcement of its quarterly earnings report today.

Apple Inc. (NASDAQ:AAPL) is one stock that might have been a considerable source of regret for Cooperman. He cut his fund’s exposure to the tech company by 67% as he sold 808,000 shares of the world’s largest company, in terms of market capitalisation. Currently, Omega’s stake in Apple is valued at $42.36 million, comprising 1.77% of the portfolio value.

Apple Inc. (NASDAQ:AAPL)

Shares of Apple Inc. (NASDAQ:AAPL) are up a hefty 15.5% just this year, and may be heading even higher depending on the success of the company’s latest venture into the smart watch arena, with a rumored entry into the electric car market also worth keeping an eye on.

Disclosure: None