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.

Swedish-Born Tom Sandell Focuses on Equity Special Events Opportunities

Sandell Asset Management Corporation is a New York-based alternative asset management firm that predominantly focuses on equity special events and credit opportunities. The asset manager, founded by Thomas Sandell in 1998, seeks to find fundamentally attractive hard-catalyst corporate events at companies across the globe. While Mr. Sandell, born and raised in Sweden, may seem uncommonly quiet for an activist investor, his New York-based hedge fund has also engaged in numerous activist campaigns in recent years. Sandell Asset Management had an equity portfolio worth $420.98 million at the end of March, up from the $362.61 million figure recorded at the end of the December quarter. Leaving these figures aside, let’s have an in-depth look at Sandell’s top five equity holdings as of the end of the March quarter.

At Insider Monkey, we track around 730 hedge funds and institutional investors. Through extensive backtests, we have determined that imitating some of the stocks that these investors are collectively bullish on can help retail investors generate double digits of alpha per year. The key is to focus on the small-cap picks of these funds, which are usually less followed by the broader market and allow for larger price inefficiencies (see more details about our small-cap strategy).

#5. Baxalta Inc. (NYSE:BXLT)

– Number of shares owned by Sandell as of March 31: 499,070

– Value of Sandell’s holding as of March 31: $20.16 Million

The New York-based asset manager acquired a new stake of 499,070 shares of Baxalta Inc. (NYSE:BXLT) during the January-March period, which was worth $20.16 million at the end of the quarter. In January 2016, the U.S. drugmaker sealed an agreement with Shire PLC (ADR) (NASDAQ:SHPG) under which the Dublin-based company will acquire the former to create a leader in the treatment of rare diseases. Under the terms of the January agreement, Baxalta shareholders will receive $18.00 in cash and 0.1482 American Depository Shares (ADSs) of Shire for each Baxalta share at closing. The shareholders of the two companies will vote on the proposed merger on May 27, with the transaction being anticipated to close in early June. Shire officials recently assured the market that the new regulations imposed by the U.S. government to curb tax inversions would not hamper the $32 billion merger. Daniel S. Och’s OZ Management added a 14.43 million-share stake in Baxalta Inc. (NYSE:BXLT) to its portfolio during the March quarter.

Follow Baxalta Inc (NYSE:BXLT)
Trade (NYSE:BXLT) Now!

#4. Cablevision Systems Corporation (NYSE:CVC)

– Number of shares owned by Sandell as of March 31: 622,500

– Value of Sandell’s holding as of March 31: $20.54 Million

Sandell Asset Management upped its existing position in Cablevision Systems Corporation (NYSE:CVC) by 158,900 shares, or roughly 34%, during the first quarter of 2016 to 622,500 shares. The increased stake was worth $20.54 million at the end of March and accounted for 4.9% of the hedge fund’s portfolio. In September 2016, Cablevision agreed to be acquired by European cable company Altice N.V. in a $17.7 billion deal that could create the fourth-largest cable provider in the United States. Under the terms of the agreement, Cablevision shareholders would receive $34.90 in cash for each share of Cablevision. The multi-billion-merger between Cablevision and the Dutch company was initially anticipated to close during the second quarter of 2016. Cablevision shares have advanced 8% since the beginning of 2016 and trade slightly below the $34.90 acquisition price, which suggests most investors anticipate the deal to go through successfully. Jim Simons’ Renaissance Technologies owns 5.55 million shares of Cablevision Systems Corporation (NYSE:CVC) as of March 31.

Follow Cablevision Systems Corp (NYSE:CVC)
Trade (NYSE:CVC) Now!

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.