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.

Hedge Funds Are Buying and Selling These Stocks Recently

SAC CAPITAL ADVISORS13D and 13G filings with the SEC allow observers and individual investors to track large positions being taken by hedge funds, including some of the best known and most successful investors today.  Here are what five hedge funds have been up to recently:

Southeastern Asset Management reduced their stake in TW Telecom (TWTC) to a little over 16 million shares, giving Southeastern 10.7% of the shares outstanding.  At the end of March the fund had nearly 27 million shares, so this is a substantial reduction.  With TWTC up 29% year to date the fund is likely locking in recent gains on its investment or rebalancing its portfolio (check out Southeastern Asset Management’s portfolio).  TWTC, which provides business ethernet and other telecom services to businesses, currently trades at a P/E of 59 and an enterprise value of nearly 10 times trailing EBITDA with no dividend, so it is far from a value investment.  Its growth, however, has been very steady with Q1 of 2012 being the 30th consecutive quarter of revenue growth.  Jim Simons’s Renaissance Technologies was another major hedge fund holder of the stock at the end of March, with 1.4 million shares.

Third Avenue Management engaged in three significant sales of stock.  First, they reduced their stake in Investment Technology Group (ITG) to about 1.3 million shares or about 3.5% of the shares outstanding.  Their position in PH Glatfelter (GLT) was decreased to about 1.6 million shares, about 3.7% of the company.  Finally, Third Avenue now owns about 4.8% of Electronics for Imaging (EFII) as a result of bringing the number of shares in its portfolio down to about 2.2 million.  Third Avenue had owned 3.3 million, 2.5 million, and 2.4 million shares respectively of these companies on March 31 (see Third Avenue’s other holdings).  Of these, the largest sale was of ITG which was reduced by 31% since that time.

Steve Cohen’s SAC Capital Advisors (see more of Steve Cohen’s stock picks) invested additional capital in Wellcare Health Plans (WCG) and now owns approximately 2.2 million shares of the company, which comes out to 5% of the shares outstanding.  This is roughly double the 1.1 million shares it owned at the end of March.  Wellcare is a provider of public health insurance programs such as Medicare and Medicaid and receives its revenue from federal and state government agencies in relation to the number of members in its network.  Renaissance Technologies is also a top hedge fund holder of WCG, with 1.1 million shares.  The stock trades very cheaply with a trailing P/E of less than 10 and a trailing EBITDA multiple of 2.5, even after rising 22% so far in 2012.  The company has nearly $39 of cash on its balance sheet per share, which places it in a good liquidity position but means it is not investing much in bringing in future earnings.

Luxor Capital owned 6.8 million shares of Nordion (NDZ).  This is down from 10.1 million at the end of March, but the fund still owned about 11% of the shares outstanding (here are other recent Luxor holdings).

Finally, Artis Capital Management decreased its position in PLX Technology (PLXT) to about 650,000 shares.  Artis had owned 3.9 million shares at the end of March and was likely selling out of its position after good earnings pushed the stock up 58% in the second quarter.

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.
This is a FREE report from Insider Monkey. Credit Card is NOT required.