Atticus Hedge Fund Likes MasterCard
Hedge fund Atticus Management is shifting its attention to credit cards and airplanes.
The $12 billion fund led by Timothy Barakett disclosed Monday that it has acquired 5.1% equity stakes in both MasterCard (MA) and Mexican airport management company Grupo Aeroportuario (PAC), also known as Pacific Airport Group. On the basis of today's share prices, Atticus' stake in MasterCard is valued at $200 million, and its holding in Pacific Airport is worth $76 million.
Atticus, which manages six different funds, has made a strategy out of buying significant equity stakes in companies that either are in a hot sector, are ripe for a rebound or are potential acquisition targets. Atticus is up about 27% this year.
The hedge fund most recently was in the news because of its high-stakes gamble on global consolidation of stock exchanges. Prior to last week's announcement of the merger between the New York Stock Exchange (NYX) and Euronext, Atticus had been a significant equity holder in the NYSE, Euronext and Germany's Deutsche Borsche, which also made a bid for Euronext.It's not clear from the regulatory filings when Atticus began acquiring shares of MasterCard and Grupo Aeroportuario. Both companies had splashy IPOs this year. MasterCard, the big credit card association, raised $2.4 billion in its May 24 initial public offering. Shares of MasterCard, priced at $39, most recently traded at $49.92, up 28%. Shares of Pacific Airport, which raised $1 billion in a February IPO, currently sell for $30.82. The stock, technically listed as an ADR in the U.S., is up 43% since its $21 offering price.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV