Three Big Moves Made by Several Multi-Billion Dollar Hedge Funds

According to a separate 13G filing, Steve Cohen’s Point72 Asset Management has lifted its position in Summit Materials Inc. (NYSE:SUM) by 549,393 shares since the end of the third quarter. The public filing reveals that Cohen’s family office owns 2.50 million shares in the aggregates-focused, construction materials company, representing 5.1% of its outstanding common stock. The shares of the cement maker have gained almost 10% since the company’s Initial Public Offering on March 11. Summit is among the largest suppliers of aggregates by volume in the United States, so the company is worth paying attention to considering the strengthening housing market. Even so, its top- and bottom-lines may be too sensitive to national and global economic conditions, and specifically to changes in construction spending. Summit Materials Inc. (NYSE:SUM)’s third quarter net revenue came to $426.29 million, compared to $248.14 million reported in the same quarter last year. Meanwhile, its net income grew to $33.87 million from $28.12 million.

The cement maker became more popular among the hedge funds monitored by Insider Monkey during the third quarter, with the number of smart money investors with stakes in the company increasing to 30 from 21 quarter-over-quarter. The value of the money poured into the stock grew to $341.78 million from $204.69 million during the three-month period. These hedge funds owned 17.60% of the company’s shares on September 30. Billionaire Leon Cooperman of Omega Advisors increased his exposure to Summit Materials Inc. (NYSE:SUM) by 333,900 shares during the September quarter and holds 933,900 shares as of September 30.

As stated by a 13G filing, Larry Robbins’ Glenview Capital Management holds a 5.35 million-share position in Laboratory Corp. of America Holdings (NYSE:LH), which denotes an increase of 485,579 shares from the position revealed through the latest round of 13F filings. The updated position represents 5.29% of the healthcare diagnostics company’s outstanding shares. Laboratory Corp’s stock is up by 11% year-to-date and is currently trading at a trailing P/E ratio of 26.61, which is slightly above the 22.70 average for the S&P 500. However, analysts have great expectations for the company’s earnings potential, which can easily be noticed by looking at its forward P/E ratio of 13.65 (the forward P/E ratio of the S&P benchmark stands at 17.25). Reportedly, Laboratory Corp. of America Holdings (NYSE:LH) intends to purchase the U.K-based life sciences testing company LGC (Laboratory of the Government Chemist), in an attempt to expand its services offerings.

In the meantime, Laboratory Corp. lost its charm within the hedge fund industry during the September quarter, as the number of hedge funds that we track which were invested in the company decreased to 43 from 52. Even so, these investment management firms stockpiled 21.40% of the company’s outstanding shares on September 30. Laboratory Corp. of America Holdings (NYSE:LH) was one of the biggest new equity holdings of Andreas Halvorsen’s Viking Global in the third quarter (read more details).

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