Hess Corp. (HES), Delphi Automotive PLC (DLPH), BMC Software, Inc. (BMC): Billionarie Activist Paul Singer Remains Active

Published on May 31, 2013 at 9:19 am by The Motley Fool in Hedge Funds

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Dell Inc. (NASDAQ:DELL) is in the middle of a battle between founder Michael Dell and billionaire activist Carl Icahn. Founder Michael Dell had planned to take the company private for $24.4 billion, however, activist investors have come out in opposition of the deal. Icahn and other large shareholder Southeastern Asset Management proposed an alternative offer that involves keeping Dell as a public company (see what else Icahn is buying up).

While Icahn’s deal could lead to further upside for investors versus Michael Dell Inc. (NASDAQ:DELL)’s $13.65, there are still concerns related to Dell’s reliance on the PC market. Reverberating these troubles was the tech company’s 1Q results. 1Q EPS came in at $0.21 compared to $0.43 for the same period last year and below consensus forecast of $0.35. I think there are still industry headwinds for the company.

Bottom line

Elliott Associates has strong conviction in Hess Corp. (NYSE:HES), and I believe that Singer will see things through to the end, thus, investing in Hess would be a long-term positive for investors. There is likely little upside over the interim for BMC Software, Inc. (NASDAQ:BMC) since it is currently a merger-arbitrage play, but there is long-term value in the company if it remains public.

I’d also look to JPMorgan Chase & Co. (NYSE:JPM) and Delphi Automotive PLC (NYSE:DLPH) for generating long-term returns. On the other hand, although Singer bought up shares of Dell Inc. (NASDAQ:DELL), I don’t think owning it is for the faint of heart, given the uncertainties of whether Icahn can put together the funding for his deal.

Marshall Hargrave owns shares of Dell and Hess. The Motley Fool owns shares of BMC Software.

The article Billionarie Activist Paul Singer Remains Active originally appeared on Fool.com.