Owens-Illinois Inc (OI), Ashland Inc. (ASH) Among This $2 Billion Hedge Fund’s Picks

Roepers has taken profits on his investment in Rockwood Holdings, Inc. (NYSE:ROC), which is still one of his largest holdings by market value even after selling nearly half of his shares. Another specialty chemicals company, Rockwood is up 32% year to date. However, we would note that net income was down considerably in its most recent quarter compared to the same period in the previous year despite a small increase in revenue. Barry Rosenstein’s JANA Partners reported a position of 2.8 million shares in its most recent 13F filing (see Rosenstein’s stock picks).

Oil States International, Inc. (NYSE:OIS) has been a hot name recently; JANA has taken a large stake in the company and plans to push to spin out one of its business units, while billionaire David Einhorn of Greenlight Capital recently gave a presentation arguing that the stock is undervalued (read why these investors like Oil States). Atlantic has increased its stake to 1.9 million shares. As the oilfield equipment and services company is currently organized, the trailing and forward earnings multiples both clock in at 13 (even to slightly above where its peers trade). Oil States is also an analyst darling, with a five-year PEG ratio of 0.8.

The fund has cut its stake in Energizer Holdings, Inc. (NYSE:ENR) and owned 1.3 million shares at the beginning of April, down from 2.2 million shares three months earlier. The provider of batteries and personal care products (it owns the Schick and Playtex brands, for example) saw a 9% increase in earnings last quarter compared to a year ago, but revenue was about flat. At 16 times trailing earnings, Energizer does have to deliver moderate earnings growth to justify its current valuation. GAMCO Investors, managed by billionaire Mario Gabelli, owned 1.3 million shares at the end of 2012 (find Gabelli’s favorite stocks).

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