Finally, Eminence Capital’s biggest closed positions included EMC Corporation (NYSE:EMC) and NetApp Inc. (NASDAQ:NTAP). Storage giant EMC Corporation (NYSE:EMC) has been tapping the bond market, borrowing $5.5 billion to help it repurchase close to 10% of its shares. It has also initiated a dividend, recently yielding 1.6%. Many see it poised to gain from the rapidly growing cloud-computing and “Big Data” arenas, and it holds an 80% ownership stake in virtualization specialist VMware, Inc. (NYSE:VMW), too. EMC Corporation (NYSE:EMC) has been posting strong numbers and, in many ways, outpacing its smaller rival NetApp Inc. (NASDAQ:NTAP).
NetApp Inc. (NASDAQ:NTAP), meanwhile, also yields 1.6% these days (via its own new dividend), and recently jumped in price on hopes that an activist investor might help the company’s prospects. It has also announced layoffs, and boosted its share buyback plans — though such share reduction can be offset by stock issuances for employees. The company recently posted disappointing revenue numbers, but it still looks attractive to some, in part due to strong free cash flow. There’s also speculation that NetApp Inc. (NASDAQ:NTAP) might end up acquired by another major data player, such as Oracle Corporation (NASDAQ:ORCL).
We should never blindly copy any investor’s moves, no matter how talented the investor. But it can be useful to keep an eye on what smart folks are doing. Therefore, 13-F forms can be great places to find intriguing candidates for our portfolios.
The article Here’s What This $4 Billion Hedge Fund Has Been Buying originally appeared on Fool.com is written by Selena Maranjian.
Longtime Fool contributor Selena Maranjian, whom you can follow on Twitter, owns shares of Qualcomm. The Motley Fool recommends VMware. The Motley Fool owns shares of EMC, Oracle., Qualcomm, and VMware.
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