Billionaire Paul Singer’s Top Small-Cap Picks ~ Riverbed Technology, Inc. (RVBD), Informatica Corporation (INFA), FCB Financial Holdings Inc (FCB)

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Paul Singer’s Elliott Management has filed its 13F with the SEC for the reporting period of March 31. The investment manager boasts an equity portfolio valued at $8.12 billion, with its top ten stock holdings accounting for 72.08% of its overall portfolio, making highly concentrated. Paul Singer made 16 new purchases in the quarter along with additional purchases in to ten other stocks. Technology, energy, and consumer discretionary are among the primary investment sectors of the fund manager, with Hess Corp. (NYSE:HES), Juniper Networks, Inc. (NYSE:JNPR) and EMC Corporation (NYSE:EMC) being among his top stock picks. Singer has also made investments in several small-cap companies, which we are going to discuss in this article, including Riverbed Technology, Inc. (NASDAQ:RVBD) and Informatica Corporation (NASDAQ:INFA).


Insider Monkey tracks hedge funds’ moves in order to identify actionable patterns and profit from them. Our research has shown that hedge funds’ large-cap stock picks historically delivered a monthly alpha of six basis points, though these stocks underperformed the S&P 500 Total Return Index by an average of seven basis points per month between 1999 and 2012. These stocks were able to generate alpha because of their lower risk profile. On the other hand, the 15 most popular small-cap stocks among hedge funds outperformed the S&P 500 Index by an average of 95 basis points per month. These stocks were slightly riskier, so their monthly alpha was 80 basis points (read the details here). Since the official launch of our small-cap strategy in August 2012 it has performed just as predicted, returning over 144% and beating the market by more than 84 percentage points.

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With 14.97 million shares valued at $312.95 million, Riverbed Technology, Inc. (NASDAQ:RVBD) was the largest small-cap stock holding of Singer. The independent computing services provider had a market cap of $3.31 billion and its shares were trading at $20.99, having improved by 2.87% through April 24, before its acquisition by private equity firm, Thoma Bravo was completed and the company taken private. Riverbed Technology, Inc. (NASDAQ:RVBD) was a market leader in application performance infrastructure and its acquisition was valued at $3.5 billion with its shareholders receiving $21.00 in cash for each share of the company. Nick Niell‘s Arrowgrass Capital Partners was another leading shareholder of Riverbed Technology with 8.19 million shares of the firm.

Informatica Corporation (NASDAQ:INFA) comes in at number two in the small-cap stock holdings of Elliott Management, with the position amounting to 5.95 million shares valued at $260.88 million. The enterprise solutions provider has a market cap of $5.05 billion and its shares have grown 26.05% year-to-date. Informatica Corporation (NASDAQ:INFA) announced its acquisition by a company which is under the control of Permira Funds and the Canada Pension Plan Investment Board, for nearly $5.3 billion. However the announcement backfired on the company when one of its investors filed a lawsuit stating that the offer was an undervaluation of the tech firm and the process of acquisition was unfair to the shareholders of Informatica Corporation (NASDAQ:INFA). Matt Sirovich and Jeremy Mindich‘s Scopia Capital is one of the primary investors of the company.

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