Billionaire Steve Cohen Reveals Stake in Promising Biotech Company, While H Partners Cashes Out of Six Flags (SIX)

According to a Form 4 filing, Rehan Jaffer’s H Partners Management cut its position in Six Flags Entertainment Corp (NYSE:SIX) by 441,563 shares over the past several days, selling the shares at a weighted average price of $53.17. The fund still holds 14.95 million shares of the regional theme park operator, which has seen its shares advance by 23% this year, extending their two-year and five-year returns to 43% and 277%, respectively. Therefore, it appears that H Partners is trying to gradually take some profits off the table from its investment in the company, which may be an appropriate move considering the company’s rich trailing price-to-earnings ratio. Six Flags Entertainment Corp (NYSE:SIX) has a trailing P/E ratio of 44.63, which is significantly above the average of 22.71 for the companies included in the S&P 500 benchmark. The company has delivered strong revenue growth this year despite facing foreign currency headwinds. Six Flags reported revenue of $1.05 billion for the nine-month period that ended September 30, up by $54.4 million or 5% relative to the same quarter of last year. The increased attendance stands behind this top-line growth, which was offset by a decrease in total revenue per capita due to the weaker Mexican Peso and Canadian Dollar (Six Flags operates one park in Mexico City and one in Montreal, along with an additional 16 parks that are located in the United States).

The number of smart money investors that we track which own long positions in the theme park operator declined to 29 from 33 during the September quarter, while the value of their positions shrank by less than 1% to $1.05 billion. Even so, these hedge fund investors held slightly more than 24% of the company’s outstanding common stock on September 30. Amy Minella’s Cardinal Capital owns 1.03 million shares of Six Flags Entertainment Corp (NYSE:SIX) as of the end of the third quarter.

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