Rail-Splitter Capital Management, managed by John Croghan and Richard Fradin, recently filed its 13F Form with the U.S. Securities and Exchange Commission, revealing its equity holdings as of the end of the fourth quarter of 2014. During the quarter, the fund acquired nine new positions and reduced its stakes in over 10 stakes. In this article, we will talk about at the three largest new positions held by the hedge fund, which are represented by Covidien plc (NYSE:COV), Dollar Tree Inc. (NASDAQ:DLTR), and Sherwin-Williams Co (NYSE:SHW).
Rail-Splitter Capital Management was founded in 2002, and is based in Chicago, Illinois. The hedge fund applies a consistent fundamental investment approach and a disciplined investment process that focuses on fundamental research, deep sector experience and valuation discipline.
Covidien plc (NYSE:COV) is one of new positions the fund disclosed in its latest 13F. According to the filling, Rail-Splitter Capital Management holds 121,970 shares of the company, valued at $12.48 million. Covidien plc (NYSE:COV) is a global healthcare company that develops and manufactures healthcare products for clinical and home use. The company has a market cap of more than $47 billion. The company’s stock during one-year period moved up by over 50%, and currently is trading at $103.64, close to its 52 week high of $106.29.
In June, Medtronic Inc. (NYSE: MDT) signed a deal to acquire Covidien plc (NYSE:COV) in a cash-and-stock transaction valued at $93.22 per Covidien share, or a total of about $42.9 billion. Following the completion of the transaction, both companies will be combined under a new entity to be called Medtronic plc. The deal is subject to certain conditions, including approvals by the companies’ shareholders, regulatory clearances in the U.S., the E.U., China and certain other countries.
Rail-Splitter Capital Management sold its entire stake in Medtronic Inc. (NYSE: MDT) during the fourth quarter, according to the filing. Previously, the fund reported holding 139,791 shares of Medtronic Inc. (NYSE: MDT) at the end of third quarter.
Other investors betting big on Covidien plc (NYSE:COV) include Paulson & Co, led by John Paulson, which disclosed ownership of 12.60 million shares of the company, as of the end of the third quarter. Taconic Capital, managed by Frank Brosens, held 9.91 million shares of the company at the end of September 2014.