Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

CenturyLink, Inc. (CTL), Two Harbors Investment Corp (TWO), Sirius XM Radio Inc (SIRI): Here’s What This $15 Billion Money Manager Has Been Buying

Every quarter, many money managers have to disclose what they’ve bought and sold, via “13F” filings. Their latest moves can shine a bright light on smart stock picks.

Today, let’s look at Eagle Asset Management, a massive money management arm of Raymond James Financial. Tracing its history back to 1976, the company provides investment services via individual managed accounts as well as mutual funds.

The company’s reportable stock portfolio totaled $15.1 billion in value as of June 30, 2013.

Interesting developments

So what does Eagle Asset Management’s latest quarterly 13F filing tell us? Here are a few interesting details:

The biggest new holdings are SeaWorld Entertainment and OpenTable. Other new holdings of interest include Pinnacle Foods. Pinnacle Foods is a recent IPO with a new dividend, which yields about 2.8%. Its brands include Birds Eye, Aunt Jemima, Hungry-Man, Van de Kamp’s, Armour, Lender’s, Mrs. Paul’s, Vlasic, Log Cabin, Mrs. Butterworth, and Duncan Hines, among others. The company has a significant debt load, so some have worried about its interest in acquiring Unilever’s Wish-Bone salad dressing brand and Del Monte Foods’ canned foods. Bulls like its strong brand lineup and see it as a solid income play. Its last quarter featured revenue down a smidge but earnings up, helped by cost-cutting.

Among holdings in which Eagle Asset Management increased its stake was CenturyLink, Inc. (NYSE:CTL). Telecom concern CenturyLink, Inc. (NYSE:CTL) yields an appealing 6% (which reflects a dividend cut of about 25% as the company focuses more on share buybacks). The company landed a hefty Pentagon contract in April, with a possible 10-year value of $750 million, and has been moving into promising arenas such as cloud computing (via its purchase of SAVVIS). Having merged with Qwest, CenturyLink, Inc. (NYSE:CTL) has substantial debt, topping $19 billion, but also significant free cash flow of nearly $3 billion annually. Its earnings per share has been rising in the past few years, but revenue growth is mixed. The company is closing in on union contract agreements with 39% of its workers.

Eagle Asset Management reduced its stake in lots of companies, including Two Harbors Investment Corp (NYSE:TWO) and Sirius XM Radio Inc (NASDAQ:SIRI). Two Harbors Investment Corp (NYSE:TWO) is a mortgage REIT, or mREIT, recently yielding a gargantuan 12.3% — though its payouts don’t get the lower tax rates of other dividends. It has more flexibility than some of its peers because it’s a “hybrid” mREIT, investing in both government agency-backed mortgages and ones that are not so backed. Some worry about rising interest rates and prepayments on loans, but Two Harbors Investment Corp (NYSE:TWO) has hedged against some of that. Insiders and institutions have been buying shares in recent months.

Sirius XM Radio Inc (NASDAQ:SIRI) has come a long way since the merger between Sirius and XM five years ago, adding millions of subscribers, more than $1 billion in revenue, and solidly turning the corner into profitability. The company boasts more than 25 million subscribers, and revenue and earnings have been growing at double-digit rates. Growing auto sales bode well for Sirius XM Radio Inc (NASDAQ:SIRI), as its radios are embedded in many vehicles. It recently refinanced a lot of debt at a lower rate, has been aggressively buying back shares, and has struck a deal with AT&T, though the latter may turn out to be more of a rival.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.