Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

New York Community Bancorp, Inc. (NYCB), Exelixis, Inc. (EXEL): Here’s What This $53 Billion Hedge Fund Company Has Been Buying

Every quarter, many money managers have to disclose what they’ve bought and sold, via “13F” filings. Their latest moves can shine a bright light on smart stock picks.

Today let’s look at the D.E. Shaw & Co., founded by David E. Shaw and with a reportable stock portfolio totaled $53.2 billion  in value as of June 30.

Shaw is known as a math wizard, and a quantitative investing pioneer. His firm is reportedly extremely selective, hiring less than 1% of applicants — and CEO Jeff Bezos once made the cut.

New York Community Bancorp, Inc. (NYSE:NYCB)

Interesting developments
So what does D. E. Shaw’s latest quarterly 13F filing tell us? Here are a few interesting details.

The biggest new positions are call options on Microsoft and puts on Tesla Motors. Its biggest new holdings are Gilead Sciences and Scripps Networks Interactive. Other new holdings of interest include New York Community Bancorp, Inc. (NYSE:NYCB) and Pinnacle Foods. New York Community Bancorp, Inc. (NYSE:NYCB) has been growing via acquisitions and its management is known for prudent management of credit risk. It has been growing its commercial and industrial lending business, and its second quarter featured estimate-topping earnings and a rising net interest margin. Some see the bank’s sizable multi-family loan portfolio as an ace in the hole, offering refinancing-related income. For patient investors with conviction, the stock offers a whopping 6.8% dividend yield.

Pinnacle Foods is a recent IPO, with a strategy of “Reinvigorating Iconic Brands” and a new dividend, yielding a solid 2.7%. The company has a significant debt load, but it also has a strong brand lineup, featuring brands such as Birds Eye, Aunt Jemima, Hungry-Man, Van de Kamp’s, Armour, Lender’s, Mrs. Paul’s, Vlasic, Log Cabin, Mrs. Butterworth, Duncan Hines — and now Wish-Bone, thanks to a recent $580 million purchase. In Pinnacle’s second quarter, revenue dropped 3%, with management noting, “We delivered another quarter of strong earnings growth as we expanded gross margins through effective productivity programs and ongoing improvement in product mix.” The quarter impressed analysts at Zacks enough to lead to a rating upgrade, to Strong Buy.

Among sizable holdings in which D.E. Shaw increased its stake were Freeport McMoRan Copper & Gold and BMC Software. Smaller holdings that were greatly increased include Exelixis, Inc. (NASDAQ:EXEL) and Pengrowth Energy Corp (USA) (NYSE:PGH). Biotech company Exelixis, Inc. (NASDAQ:EXEL) has bulls excited about its cabozantinib drug, which, as COMETRIQ, is approved to treat thyroid cancer and even more promising, is in trials to treat prostate cancer and metastatic renal cell carcinoma. The company is looking at treating as many as nine different conditions with it, such as bone tumors. On the downside, though, Cometriq is expensive, and the company’s debt has been growing, along with its share count. In its second-quarter conference call, management noted that it’s tripling its sales force for COMETRIQ on promising sales from community physicians.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.