In 1998, Tom Sandell founded Sandell Asset Management, a New York City based hedge fund which considers itself a “leading, private, alternative asset manager specializing in international, event driven, multi-strategy investing.” The hedge fund has below $1 billion in assets under management, with a significant amount of them being invested in the equity markets.
One of the best ways to monitor hedge fund activity is by taking a look at their quarterly 13F filings with the Securities and Exchange Commission. In this way, we are looking at the top five largest picks in terms of value.
In its latest filing, Sandell Asset Management reported its largest position in Spectra Energy Corp. (NYSE:SE). The stake involves over two million shares, and is worth almost $62 million. It is important to mention that during the first three months of 2013, Sandell boosted its stake in Spectra Energy Corp. (NYSE:SE) by almost 2 million shares.
Next on the list comes Compuware Corporation (NASDAQ:CPWR), in which Sandell disclosed a $58.1 million stake, which contains over 4.6 million shares. The stake reported at the end of 2012 included 6 million shares, and was worth $65 million. Since the beginning of the year, the stock of Compuware Corporation (NASDAQ:CPWR) has returned below 6%.
In Virgin Media Inc. (NASDAQ:VMED), the hedge fund disclosed 674,800 shares, worth more than $33 million. The stake in Virgin Media Inc. (NASDAQ:VMED) was a new position in Sandell’s equity portfolio. In February, Liberty Global Inc. (NASDAQ:LBTYA) agreed to purchase Virgin Media Inc. (NASDAQ:VMED) for cash and stock.
In fourth is a $30.1 million stake held by Sandell in KAR Auction Services Inc (NYSE:KAR). The stake contains 1.5 million shares, and represents a new position in hedge fund’s 13F portfolio. With the acquisition of a stake in KAR Auction Services Inc (NYSE:KAR), Sandell joined Gamco Investors managed by Mario Gabelli and Ken Griffin’s Citadel Investment Group as KAR bulls.
Who’s fifth?
And the fifth place is held by yet another new position. Sandell disclosed ownership of 396,790 shares in Phillips 66 (NYSE:PSX). The value of the stake amounts to $27.8 million. The stock of Phillips 66 (NYSE:PSX) has a year-to-date return of over 15.6% and sports a P/E of 7.9x.
On the whole, Sandell Asset Management reported an equity portfolio, which contains stakes in 27 companies, from various sectors. The value of the hedge fund’s 13F portfolio amounts to $503.7 million, up from $304.6 million reported at the end of 2012.
In addition to Sandell Asset Management, there are some other hedge funds whose top picks are important to watch. In this way we suggest you take a look at the top picks of Quincy Lee’s Ancient Art (Teton Capital), Robert Raiff’s Raiff Partners and Lisa Rapuano’s Lane Five Capital.
Disclosure: none
