News Corp (NWSA), Hess Corp. (HES): Billionaire James Dinan’s York Capital Has Been Loving Special Situations

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Selling Petrologistics. York dumped all of its shares of PetroLogistics LP (NYSE:PDH), which had been one of its largest holdings at the beginning of 2013. The $1.9 billion market cap company operates a propylene production facility; propylene is an input needed by chemical and petrochemical companies. Petrologistics recently paid out an abnormally large dividend; while its payments do fluctuate (with propylene prices, among other factors) and it is an MLP with somewhat different tax considerations, it has now paid $1.42 in dividends since going public about a year ago, which is roughly a 10% yield against the current price. Of course we wouldn’t count on the business being similarly generous going forward, but PetroLogistics LP (NYSE:PDH) looks like a prospective dividend stock for income investors willing to tolerate the accompanying risk.

We’ve noticed in our analysis of other billionaires’ Q1 moves that a number of them have been buying into News Corp (NASDAQ:NWSA), and with the business doing well and the breakup impending we think that it is an interesting target for investors to research. We’ll also have to see how Hess Corp. (NYSE:HES) does, though many oil and gas stocks are trading at a discount to that stock and might be more attractive from a value perspective. Even with Dinan getting out of PetroLogistics LP (NYSE:PDH), it’s possible that there is an income opportunity there if the company can maintain the same level of payments it made in the last year.

Disclosure: I own no shares of any stocks mentioned in this article.

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