Rob Citrone’s Discovery Capital Management disclosed on Friday a 5% increase in its exposure to Bob Evans Farms Inc (NASDAQ:BOBE). Following the purchase of 100,000 shares of common stock, the fund owns 2.1 million shares, which represent 8.9% of the company’s outstanding stock.
Discovery Capital Management is a Connecticut- based hedge fund founded in April 1999 by Rob Citrone, a Tiger Cub. As you may know, Citrone worked as a portfolio manager at Tiger Management and Fidelity Investments before creating Discovery Capital Mangement. The firm focuses on liquidity, valuation multiples, past and potential growth in picking stocks and has a focus on technology, services, basic materials and financial sectors. As of the end of the third quarter of the year, the fund held an equity portfolio worth more than $8.8 billion.
Bob Evans Farms Inc (NASDAQ:BOBE) is a $1.19 billion market cap full-service restaurant company that operates Bob Evans Restaurants, and a producer and distributor of pork sausage product and complementary home-style refrigerated side dishes and frozen food items.
Mr. Citrone’s fund started a position in the company, with 2 million shares, over the third quarter, and since, added 100,000 more shares to its holdings. The most recent purchase took place on the day that the company reported its second quarter financial results. After missing estimates, the stock fell more than 11.6% (on December 3), opening an attractive entry point for investors like Mr. Citrone.
On top of Discovery Capital Management, other major hedge funds are also quite bullish on Bob Evans Farms Inc (NASDAQ:BOBE). Tom Sandell’s Sandell Asset Management last disclosed ownership of 1.52 million shares of the company. Because of the activist nature of this stake, the fund has been involved in several corporate issues, including the sale of the company’s wholly-owned subsidiary BEF Foods, and some of its real estate, as well.
Also betting on the food services company is Chuck Royce’s Royce & Associates, which last declared holding 430,473 shares.
In addition to liking Bob Evans Farms Inc (NASDAQ:BOBE), Citrone’s Discovery Capital Management is quire bullish on Alibaba Group Holding Ltd (NYSE:BABA), Apple Inc. (NASDAQ:AAPL), and Actavis plc (NYSE:ACT), which in aggregate represent 25% of the fund’s equity portfolio. Check out its top positions for the third quarter here.
Disclosure: Javier Hasse holds no positions in any stocks or funds mentioned