Hedge Fund Canyon Capital’s Top Stock Picks Include Clear Channel

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Jack in the Box Inc. (NASDAQ:JACK). The fast food restaurant company, which also owns Qdoba Mexican Grill, carries a trailing P/E of 22 suggesting that the market expects high earnings growth going forward (though this multiple is not particularly out of place for a quick service restaurant). A member of the company’s Board of Directors bought the stock in late November; insider purchases are bullish signs on average. Canton owned about 680,000 shares of the stock.

Packaging Corp of America (NYSE:PKG). Friedman and Julis cut their stake in the $3.7 billion market cap packaging products company by 43% between July and September, though they still reported a position of about 440,000 shares. Billionaire Jeffrey Vinik, meanwhile, was buying shares (see more stock picks from Jeffrey Vinik). The stock is up 51%, bringing the trailing P/E multiple to 26, as the markets expect a very good 2013 for Packaging Corp.

DeVry Inc. (NYSE:DV). The for-profit education company also remained one of Canyon’s top stock picks despite the fact that the fund sold shares in the third quarter of the year. DeVry is down 40% in the last year, and there’s still quite a bit of short interest in the company. Earnings have been down sharply as well. However, at least in quantitative terms there is a value case to be made if the company can generate a small turnaround, given the trailing P/E of 14. Billionaire Ken Griffin’s Citadel Investment Group increased its holdings of DeVry to a total of 2.8 million shares last quarter (research more stocks Citadel was buying).

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