Citadel Investment Group’s Biggest Q1 Moves Highlight Reduced Exposure To U.S Equities

No Longer in Citadel’s Portfolio

Ford Motor Company (NYSE:F)

Citadel Investment Group held 2.95 million shares of Ford Motor Company (NYSE:F) worth $41.58 million at the end of 2015, a holding which was sold off during the first quarter. Over the past three months, Ford Motor Company (NYSE:F)’s stock has managed to recover some of the losses that it suffered earlier in the year, but it is finding it extremely hard to break above its support-turned-resistance level of $14. Though the stock, trading at a trailing P/E of 5.94 and sporting an annual dividend yield of 4.54%, is currently considered to be cheap by many investors, others feel that it is reasonably valued at current levels given the potential for earnings contraction going forward. On May 12, shareholders of the company voted against a proposal that sought to change the class structure of the stock, which would’ve given members of the Ford family voting control of the company. David Harding‘s Winton Capital Management upped its position in Ford by 32% to 5.36 million shares during the first quarter.

Thermo Fisher Scientific Inc. (NYSE:TMO)

At the end of December, Citadel held 780,000 shares of Thermo Fisher Scientific Inc. (NYSE:TMO) worth $110.64 million, a position which it discarded during the first quarter. After ending the first quarter on a flat note, shares of Thermo Fisher have been rising steadily in the second quarter. They recently made their lifetime high of $149.95 and are currently trading up by 4.21% year-to-date. Speaking at the Ira Sohn Conference on May 4, Glenview Capital’s Larry Robbins mentioned that he continues to be bullish on Thermo Fisher, which is one of the reasons why the stock has appreciated considerably in the last few days. Furthermore, analysts at Bank of America reiterated their ‘Buy’ rating and $163 price target on the stock on May 11. Ric Dillon‘s Diamond Hill Capital initiated a stake in Thermo Fisher Scientific Inc. (NYSE:TMO) during the first quarter by purchasing 590,922 shares of the company.

Zoetis Inc (NYSE:ZTS)

Selling its entire stake of 3.03 million shares of Zoetis Inc (NYSE:ZTS), which were worth $145.37 million at the end of 2015, was one of the most interesting moves made by Citadel Investment Group during the first quarter. Bill Ackman of Pershing Square recently sold a large chunk of his Zoetis holding as well, amounting to a sale of about 16.85 million shares. However, Mr. Ackman’s firm expressed continued confidence in the company in its recent letter to investors, to the point that Pershing Square’s Bill Doyle will not stand for re-election to the company’s board. On May 4, Zoetis reported its first quarter earnings, declaring EPS of $0.48 on revenue of $1.20 billion, which solidly eclipsed analysts’ estimates of EPS of $0.41 on revenue of $1.10 billion. William Von Mueffling’s Cantillon Capital Management increased its stake in Zoetis Inc (NYSE:ZTS) by 173% to 6.14 million shares during the first quarter.

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