Intel Corporation (INTC), Priceline.com Inc (PCLN): Here’s What This $5 Billion Hedge Fund Company Is Buying

Eton Park reduced its stake in companies such as Corrections Corp Of America (NYSE:CXW), a private prison operator that recently changed to REIT (real estate investment trust) status. REITs have to pay out most of their earnings as dividends, so Corrections Corp Of America (NYSE:CXW) offers a tasty payout, recently yielding 5.8%. Some aren’t comfortable with the company’s business, but bulls like its competitive advantages — new rivals can’t just easily spring up, for example — and reliable cash flow.

Finally, Eton Park’s biggest closed positions included Nexen Inc. (USA) (NYSE:NXY) and Huntington Ingalls Industries Inc (NYSE:HII). Other closed positions of interest included Best Buy Co., Inc. (NYSE:BBY). A look at some headlines for articles about Best Buy reveals that Eton Park isn’t the only one skeptical about it: “Best Buy Stock Will Only Break Your Heart,” “Best Buy Is Laughing At You,” “Is Best Buy a Sucker’s Bet?” The company is generating free cash flow, but its earnings just dropped into the red. Bulls are hopeful about its stores-within-stores, such as mini-Apple Inc. (NASDAQ:AAPL) stores, but bears worry about falling revenue and earnings.

The article Here’s What This $5 Billion Hedge Fund Company Is Buying originally appeared on Fool.com and is written by Selena Maranjian.

Longtime Fool contributor Selena Maranjian, whom you can follow on Twitter, owns shares of Apple, Intel Corporation (NASDAQ:INTC), Baidu, and Priceline.com Inc (NASDAQ:PCLN). The Motley Fool recommends Apple Inc. (NASDAQ:AAPL), Baidu.com, Inc. (ADR) (NASDAQ:BIDU), Corrections of America, Intel, and Priceline.com. The Motley Fool owns shares of Apple, Baidu, Huntington Ingalls Industries Inc (NYSE:HII), Intel, and Priceline.com.

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