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TiVo, Tyco, and Baidu Among 5 Stocks Making Morning Headlines

On the last trading day of this busy earnings week, traders are eagerly dissecting the latest news and earnings reports coming out of TiVo Inc. (NASDAQ:TIVO), Tyco International plc (Ireland) Ordinary Share (NYSE:TYC), VF Corp (NYSE:VFC), Moody’s Corporation (NYSE:MCO), and Baidu Inc (ADR) (NASDAQ:BIDU). Given that market-impacting news and earnings reports can sometimes be a good indicator of future stock performance, let’s take a closer look at the events surrounding these five companies and use SEC filings to see how the world’s greatest investors are positioned in each of these stocks.

Our research has shown that the best strategy is to follow hedge funds into their small-cap picks. This approach can allow monthly returns of nearly 95 basis points above the market, as we determined through extensive backtests covering the period between 1999 and 2012 (see the details here).

TiVo Shares Spike on Merger

Rovi Corporation (NASDAQ:ROVI) is officially buying TiVo Inc. (NASDAQ:TIVO) for $10.70 per share in cash and stock, for a total consideration of around $1.1 billion. Rovi will pay $2.75 in cash per share, subject to adjustment based on a collar mechanism, while the remainder of the offer will be paid in shares of common stock of the new holding company. The combined company expects to realize a minimum of $100 million in annual synergies, with almost two-thirds of the synergies expected to be realized in the first year after the deal closes. TiVo shares have rallied by 6% on the news to around $10 per share, while Rovi shares are up by 4.44%. Joel Greenblatt‘s Gotham Asset Management was one of the elite hedge fund shareholders of TiVo Inc. (NASDAQ:TIVO) at the end of 2015, while activist Glenn W. Welling’s Engaged Capital owned a large stake in Rovi Corporation, its top stock pick, on December 31.

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Tyco Reports Mixed Quarter

This morning, Tyco International plc (Ireland) Ordinary Share (NYSE:TYC) reported EPS of $0.45 on sales of $2.33 billion for its second quarter of fiscal year 2016, meeting earnings estimates but falling short of sales expectations by $10 million. Sales declined by 4.1% year-over-year as organic revenue inched lower by 1%. Adjusted operating margin rose by 40 basis points to 10.7%. Management expects adjusted EPS of $0.52-to-$0.54 for the fiscal third quarter and $2.05-to-$2.10 for the full 2016 fiscal year. Jim Simons‘ Renaissance Technologies owned more than 2.1 million shares of Tyco International plc (Ireland) Ordinary Share (NYSE:TYC) at the end of December.

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On the next page we examine the news that has shares of VF Corp, Moody’s Corporation, and Baidu Inc trending this morning.

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