Mike Donatelli and EAC Management’s Top Stock Picks

Mike Donatelli launched EAC Partners with six other partners in 2003. Mike Donatelli managed a merger arbitrage portfolio at George Soros’ fund between 1999 and 2003. He also worked at Steve Cohen’s SAC Capital on merger arbitrage. He also ran a merger arbitrage portfolio when he was at UBS. Donatelli has more than 20 years of experience. EAC Management also engages with high-yield and distressed securities. Mike Donatelli graduated from Harvard University and also received a law degree there in 1981. He is 53 years old.


Below we compiled a list of positions in EAC Partners’ portfolio as of September 30, 2011.

Goodrich Corp (GR): Goodrich is a supplier of aerospace components, systems and services to the commercial and general aviation airplane markets. The company reported revenues of $2.0 billion for the third quarter of 2011, compared with $1.7 billion for the same period a year ago. Net income was $201 million, up from the $160 million in the third quarter of 2010. EAC invested $9.65 million in GR and it returned 1.52% since the end of September. GR has a market cap of $15.34B and a P/E ratio of 21.78. Stephen Mandel had $473 million invested in GR. Andreas Halvorsen also had $200+ million of GR shares.

Motorola Mobility Holdings Inc (MMI): Motorola Mobility Holdings, Inc. is a provider of technologies, products and services that enable a range of mobile and wireline digital communication, information and entertainment experiences. The company reported better than estimated third quarter earnings. Its earnings were 12 cents per share, compared with an average estimate of 6 cents in a Bloomberg survey of analysts. Sales up 11% to $3.26 billion, a little bit lower than the analysts’ forecast of $3.39 billion. EAC had $4.7 million invested in MMI and it returned 3.34% since the end of September. MMI has a market cap of $11.70B. Carl Icahn had $700+ million invested in MMI.

Dollar Thrifty Automotive Gp (DTG): Dollar Thrifty Automotive Group is engaged in the business of the daily rental of vehicles to business and leisure customers through company owned stores.  The company reported third-quarter profit of $66.6 million or $2.13 per share, compared with $49.2 million, or $1.62 per share for the same quarter a year ago. Revenue was up 1.8% to $451.7 million, beating Thomson Reuters expected earnings of $1.92 a share on revenue of $448 million. EAC invested $3.1 million in DTG and the stock returned 12.13% since the end of September. DTG has a market cap of $1.84B and a P/E ratio of 14.32. James Dinan had $400+ million invested in DTG.

Southern Union Company (SUG): Southern Union is engaged in the gathering, processing, transportation, storage and distribution of natural gas in the United States. The company reported third quarter net income of $58 million, or 46 cents per shares, compared with $36.6 million, or 29 cents per share in the third quarter last year. EAC invested $1.0 million in SUG and it returned 2.76% since the end of September. SUG has a market cap of $5.22B and a P/E ratio of 20.83. John Paulson initiated a brand new $182 million of SUG during the second quarter of 2011.

LoopNet Inc (LOOP): LoopNet owns and operates an online marketplace for commercial real estate. For the third quarter of 2011, the company reported revenue of $22.21 million, compared with $19.78 million for the same quarter in 2010. Net income was $0.95 million, down from $2.74 million for the same period last year. EAC had $607,000 invested in LOOP and the stock returned 3.04% since the end of September. It has a market cap of $592.98M and a P/E ratio of 63.71. Cliff Asness initiated a brand new $43 million in LOOP over the second quarter. Jim Simons also had $23 million invested in the stock.