Sothebys (BID), Enphase Energy Inc (ENPH): Why You Should Follow Billionaire Dan Loeb’s Small Cap Picks

As has been mentioned earlier, Third Point’s stake in Sotheby’s is not only the largest among the investor’s small-cap picks, but also the eighth-largest in terms of value. His other holdings in small-cap companies are positioned much lower, such as Enphase Energy Inc (NASDAQ:ENPH), in which the fund owns 6.25 million shares, valued at $89.30 million, which places it as the 30th-largest position. Enphase Energy Inc (NASDAQ:ENPH) is a $575 million semiconductor company, which is engaged in producing microinverter systems for the solar photovoltaic industry. The stock has had a solid growth since its IPO, gaining nearly 80% in the nearly three years since. Another potential upside for holding shares of Enphase Energy Inc (NASDAQ:ENPH) is that many experts consider the solar industry to be in need of consolidation, and smaller companies with a focus on a particular segment of the industry might become acquisition targets in the near future. Another fund bullish on Enphase Energy Inc (NASDAQ:ENPH) is Jim Simons’ Renaissance Technologies, which upped its stake by 50% during the fourth quarter to 189,800 shares.

Then there is FCB Financial Holdings Inc (NYSE:FCB), a $1.1 billion national bank holding company, which owns Florida Community Bank. Third Point initiated a stake in the company during the last three months of 2014 and in its latest 13F filing disclosed holding 996,200 shares, valued at $24.55 million. The stock is up by 10% since the beginning of the year. FCB Financial Holdings Inc (NYSE:FCB) went public at the beginning of August and since the IPO the stock has gained 28%. The company quickly gained the attention of billionaire investors, as the latest round of 13F filings showed that among the funds that we track, the four largest shareholders of FCB Financial Holdings Inc (NYSE:FCB) are billionaires Paul Singer, Leon Cooperman, David Einhorn, and Dan Loeb. The largest stake is held by Paul Singer’s Elliott Management, which owns 2.58 million shares, up by 540% on the quarter. 

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