In its latest 13F filing with the U.S. Securities and Exchange Commission, Iridian Asset Management, led by David Cohen and Harold Levy, disclosed the holdings in its public equity portfolio as of the reporting period of June 30. David Cohen and Harold Levy are special situation investors focused on depressed stocks that are going through significant changes. In its latest 13F filing, Iridian Asset Management revealed a portfolio valued at $12.69 billion. Iridian Asset Management has a diversified portfolio, being primarily invested in the materials and technology sectors, with materials stocks accounting for over 21% of the fund’s portfolio. During the second quarter, the fund acquired stakes in more than 30 companies, while it reduced its position in 12 companies. In this article, we’ll talk about Iridian Asset Management’s top materials picks, including Sealed Air Corp (NYSE:SEE), W. R. Grace & Co (NYSE:GRA), and Eastman Chemical Company (NYSE:EMN).
Tracking hedge funds is a wise decision to learn about prominent investors’ strategies. Our research showed that hedge funds’ large-cap stock picks historically delivered a monthly alpha of six basis points, though these stocks underperformed the S&P 500 Total Return Index by an average of seven basis points per month between 1999 and 2012. These stocks were able to generate alpha because of their lower risk profile. On the other hand, the 15 most popular small-cap stocks among hedge funds outperformed the S&P 500 Index by an average of 95 basis points per month. These stocks were slightly riskier, so their monthly alpha was 80 basis points (read the details here). Since the official launch of our small-cap strategy in August 2012 it has performed just as predicted, returning over 123% and beating the market by more than 65 percentage points.
Let’s discuss Iridian Asset Management’s top materials picks, starting with Sealed Air Corp (NYSE:SEE). The investor slightly reduced its stake in Sealed Air Corp (NYSE:SEE) to 12.73 million shares, valued at about $654.1 million. Sealed Air Corp (NYSE:SEE) is engaged in food safety and security, facility hygiene, and the product protection business, and has a market cap of over $11 billion. Sealed Air Corp (NYSE:SEE)’s shares have been performing well, increasing by 25.94% year-to-date. Last week, Sealed Air Corp (NYSE:SEE) announced that it acquired France-based B+ Equipment for an undisclosed price. B+ Equipment is engaged in the design, manufacture, and servicing of automated packaging equipment for order fulfillment operations. Among the largest shareholders of Sealed Air Corp (NYSE:SEE) is Jean-Marie Eveillard’s First Eagle Investment Management, which reported owning 4.39 million Sealed Air Corp (NYSE:SEE) shares in its latest 13F for the reporting period of June 30.