Hound Partners, managed by Jonathan Auerbach, disclosed its equity positions for the second quarter of 2014. In a new filing with the U.S. Securities and Exchange Commission, the fund revealed holding 19 holdings, with a total market value of around $2.67 billion. The fund reduced stakes in five stocks and sold out three companies over the quarter.
We will discuss three top positions of Hound Partners for the second quarter. Valeant Pharmaceuticals Intl Inc. (NYSE:VRX) is represented as the top holding, in which Hound Partners upped its stake to 2.85 million shares from 2.43 million shares held previously. The market value of holding is $359.6 million.
Valeant Pharmaceuticals Intl Inc. (NYSE:VRX) is a multinational specialty pharmaceutical company that develops, manufactures and markets a broad range of pharmaceutical products. The company’s total revenues for the second quarter of 2014 rose to $2.0 billion, compared to $1.1 billion for the second quarter of 2013, driven by strong growth in almost all of its businesses. It reported net income attributable to the company of $125.8 million, or $0.37 per diluted share, compared to $10.8 million, or $0.03 per diluted share, in the second quarter of 2013, according to press release.
On Wednesday, shares of the company rose by 1.62% to $109.82. The company has a market cap of $36.6 billion. Aside from Hound Partners, Valueact Capital, led by Jeffrey Ubben, holds 18.92 million shares, and Andreas Halvorsen’s Viking Global owns 9.30 million shares of Valeant Pharmaceuticals Intl Inc. (NYSE:VRX).
The second holding is Carter’s Inc. (NYSE:CRI), in which the fund revealed a $274.9 million stake, which contains 3.99 million shares. The stake represents an increase from 3.41 million shares the fund reported holding at the end of the first quarter.
With a market cap of $4.2 billion, Carter’s, Inc. (NYSE:CRI) is a U.S.-based branded marketer of apparel exclusively for babies and young children. The company reported a 31.6% increase in net income in the second quarter of fiscal 2014 to $25.9 million, or $0.48 per diluted share, compared to $19.7 million, or $0.33 per diluted share, in the same period of 2013.
Other hedge funds holding stakes in Carter’s, Inc. (NYSE:CRI) include Tiger Global Management LLC, led by Chase Coleman, which owns 6.49 million shares, and Alan Fournier’s Pennant Capital Management, which holds 3.18 million shares.
Third on the list is Charter Communications Inc. (NASDAQ:CHTR), a broadband communications company and cable operator in the United States. Hound Partners disclosed holding 1.55 million shares of the company, with a reported value of $246.2 million. At the end of the previous quarter, the fund reported owning 1.45 million shares of Charter Communications Inc. (NASDAQ:CHTR).
For the second quarter 2014, the company reported an increase in revenues to $2.3 billion, compared to $2 billion in the same period of 2013. Last month, Charter Communications Inc. (NASDAQ:CHTR) completed its acquisition of Cablevision’s Bresnan Broadband Holdings LLC and its subsidiaries. The acquisition helped the company to add cable operating systems in Montana, Wyoming, Colorado and Utah, according to a news release.
Other significant shareholders of the company include SPO Advisory Corp, led by John H. Scully, which disclosed ownership of 8.67 million shares, and William B. Gray’s Orbis Investment Management holding 3.25 million shares of the company.