Hedge Funds Were All Over These 5 IPOs in Q4

#3 CSRA Inc (NYSE:CSRA)

– Investors with Long Positions (as of December 31): 31

– Aggregate Value of Investors’ Holdings (as of December 31): $669.44 million

CSRA Inc (NYSE:CSRA) was another company that made its debut on the stock market as a result of a spin-off. It became an independent, publicly traded company in late November after Computer Sciences Corp. (NYSE:CSC) completed the spin-off of its U.S public sector business. Though CSRA Inc (NYSE:CSRA)’s stock was on a gradual decline since the beginning of 2016, it changed its trajectory after the company reported its fourth quarter numbers and now trades down by nearly 13% year-to-date. While analysts were expecting the company, which ranks among the largest independent IT service providers to the U.S federal government, to report EPS of $0.42 on revenue of $1.32 billion for the quarter, it delivered mixed results of EPS of $0.48 on revenue of $1.27 billion. On February 24, analysts at Stifel Nicolaus initiated coverage on the stock with a ‘Buy’ rating and $41 price target.

#2 Northstar Realty Europe Corp (NYSE:NRE)

– Investors with Long Positions (as of December 31): 33

– Aggregate Value of Investors’ Holdings (as of December 31): $229.76 million

Moving on, NorthStar Realty Finance (NYSE:NRF) completed the spin-off of its European business into a separate publicly traded REIT, Northstar Realty Europe Corp (NYSE:NRE), on November 2. Three weeks after it became a separate entity, Northstar Realty Europe’s board authorized the company to buy back $100 million worth of its outstanding shares over the following 12 months. Shares of Northstar Realty Europe Corp (NYSE:NRE) traded mostly in a range during 2015, but have plummeted heavily this year, by over 30%. However, they have bounced back in the last two trading sessions and now trade down by only 2.5% year-to-date. The main reason for the turnaround is Cushman & Wakefield’s appraisal of the company’s assets, which found its portfolio valuation to be around $2.6 billion, which implies a net asset value of about $1.1 billion or $18 per share. Shares of NRE are currently trading at just $11.61. Steve Cohen‘s Point72 Asset Management owns 3.30 million shares of Northstar Realty Europe Corp as of December 31.

#1 Hewlett Packard Enterprise Co (NYSE:HPE)

– Investors with Long Positions (as of December 31): 46

– Aggregate Value of Investors’ Holdings (as of December 31): $1.9 Billion

Hewlett Packard Enterprise Co (NYSE:HPE) was the most popular newly listed stock among hedge funds at the end of fourth quarter. The company delivered an earnings and revenue beat for its first quarter of fiscal year 2016 on March 3, after which its shares spiked and are now trading up by 3% year-to-date. The consensus among analysts was for Hewlett Packard Enterprise Co (NYSE:HPE) to report EPS of $0.40 on revenue of $12.68 billion for the quarter, while the company declared EPS of $0.41 on revenue of $12.70 billion. Most analysts who track Hewlett Packard Enterprise Co (NYSE:HPE) are optimistic about its future, since the company is led by an experienced Board of Directors and headed by former HP Inc (NYSE:HPQ) CEO, Mig Whitman. Another reason for their bullishness is the early lead the company has taken in the hybrid cloud market, which is expected to be worth nearly $85 billion by 2019. On March 4, analysts at Sanford C. Bernstein upgraded the stock to ‘Outperform’ from ‘Market Perform’.

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