How Palestra Capital’s Investments in Monsanto Company (MON), Mohawk Industries, Inc. (MHK) & Two Other Stocks Performed?

Albeit all the negative sentiment hovering over the $3 trillion hedge fund industry, the third quarter was pretty solid for the smart money. Around 659 funds in our database  held long positions in at least five companies worth over $1.0 billion at the end of June, and those funds’ long bets posted 8.3% gains in the third-quarter based on the size of their positions on June 30. That easily topped the performance of S&P 500 ETFs, which returned only 3.3% for the period. Where hedge funds tend to falter is on the other positions in their portfolios (options plays, bonds, etc.), which are there to limit downside risk, but also limit upside potential. That’s why we recommend investors consider hedge funds’ top long bets and share them with readers throughout the year.

In this article, we’ll analyze some of Palestra Capital Management moves in four companies, including Newell Rubbermaid Inc. (NYSE:NWL), Mohawk Industries, Inc. (NYSE:MHK), Monsanto Company (NYSE:MON), and Crown Castle International Corp. (NYSE:CCI). Palestra Capital Management is a New York-based hedge fund founded in 2011 by Andrew Immerman. The value of the fund’s equity portfolio declined to $1.05 billion from $1.24 billion during the third quarter. The fund returned 12.02% from 24 of its long positions in the third quarter. In our calculations, we only took into account the fund’s long stakes in companies with market caps of over $1.0 billion.

In Newell Rubbermaid Inc. (NYSE:NWL), Palestra Capital cut its stake by 40% to 1.12 million shares worth $59.21 million during the third quarter, while the stock advanced by 8.8% during the same period. At the end of the second quarter, a total of 51 funds tracked by Insider Monkey were long this stock, up by 55% from one quarter earlier. The largest stake in Newell Rubbermaid Inc. (NYSE:NWL) was held by Viking Global, which reported holding $482.6 million worth of stock as of the end of June. It was followed by Iridian Asset Management with a $188.6 million position. Other investors bullish on the company included Point72 Asset Management, Kingdon Capital, and Diamond Hill Capital.

Palestra Capital Management also trimmed its stake in Mohawk Industries, Inc. (NYSE:MHK) by 11% to 301,916 shares worth $60.49 million during the July-September period. The move came amid a 5.6% growth registered by the stock. During the second quarter, the number of funds from our database long Mohawk Industries declined by two to 47. Among these funds, Select Equity Group held the most valuable stake in Mohawk Industries, Inc. (NYSE:MHK), which was worth $422 millions at the end of the second quarter. On the second spot was Lone Pine Capital which amassed $345 million worth of shares. Moreover, Third Point, Egerton Capital Limited, and Eton Park Capital were also bullish on Mohawk Industries, Inc. (NYSE:MHK).

After having cut its stake in Monsanto Company (NYSE:MON) by 6% in the second quarter, Palestra further reduced it by 35% in the following three months as the stock inched down by 0.6%. In this way, the fund disclosed a $40.64 million position containing 397,642 shares as of the end of June. At the end of June, 87 funds tracked by our team held shares of Monsanto Company (NYSE:MON), considerably more than 51 funds a quarter earlier. Among these funds, the largest stake in Monsanto Company (NYSE:MON) was held by Glenview Capital, which reported holding $1.12 billion worth of stock as of the end of the second quarter.It was followed by OZ Management with a $286.8 million position. Other investors holding shares of the company included Mason Capital Management, York Capital Management, and Third Point.

Finally, one of the stocks that Palestra Capital dumped last quarter was Crown Castle International Corp. (NYSE:CCI), in which the fund had previously held 561,000 shares worth $59.96 million. The position was sold as the stock lost 6.2% in the third quarter. At the end of the second quarter, 44 funds followed by us held shares of Crown Castle International, down by three funds over the quarter. Bill & Melinda Gates Foundation Trust was the largest shareholder of Crown Castle International Corp. (NYSE:CCI), with a stake worth $540.9 million reported as of the end of June. Trailing Bill & Melinda Gates Foundation Trust was Highline Capital Management, which amassed a stake valued at $195.9 million. Citadel Investment Group, Soroban Capital Partners, and Millennium Management also held valuable positions in the company.

Disclosure: none