Communications Sales & Leasing Inc (CSAL), OneMain Holdings Inc (OMF): Toscafund’s Q3 Winners Turn Traitor in Q4

Toscafund Asset Management sold 27% of its stake in Cornerstone OnDemand, Inc. (NASDAQ:CSOD) during the second quarter. Going into the third quarter, the fund had 850,000 shares of the company, which had a net worth of over $35.80 million. The stock returned 20.7% during the third quarter but collapsed hard earlier this month after the release of its latest earnings results.

CSOD was in 27 hedge funds’ portfolios at the end of the second quarter. There were 23 hedge funds in our database with CSOD holdings at the end of the first quarter. Tensile Capital, managed by Douglas Dossey and Arthur Young, holds the number one position in Cornerstone OnDemand, Inc. (NASDAQ:CSOD). Tensile Capital has a $70 million position in the stock, comprising 17% of its 13F portfolio. Sitting at the No. 2 spot is Robert G. Moses of RGM Capital, with a $60.7 million position. Ken Griffin’s Citadel Investment Group, Glenn J. Krevlin’s Glenhill Advisors, and Dennis Puri and Oliver Keller’s Hunt Lane Capital were also long the stock.

Toscafund upped its stake in First Data Corp (NYSE:FDC) by 37% in the June quarter, ending the period with a total of over 2.2 million shares of the company, which had a total worth of over $24.51 million on June 30. The stock returned 18.9% during the third quarter and has gained another 8% in the fourth quarter, being the only stock to also post a positive Q4 gain.

Heading into the third quarter of 2016, a total of 35 of the hedge funds tracked by Insider Monkey held long positions in the stock, a 106% surge from one quarter earlier. Omega Advisors was the largest shareholder of First Data Corp (NYSE:FDC) on June 30, with a stake worth $173.3 million reported as of the end of June. Trailing Omega Advisors was Brahman Capital, which amassed a stake valued at $126.3 million. Glenview Capital, Palestra Capital Management, and Alyeska Investment Group also held valuable positions in the company.

Disclosure: None