This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Hedge Funds Bought These Stocks Recently

The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.

NEW YORK (Insider Monkey) -- Hedge funds will disclose their end of first-quarter holdings next week, although we can still track hedge funds' transactions through Form 4, 13D and 13G filings. We don't get to see their entire portfolio in these filings, but we get to see recent transactions in their large positions. Here are the stocks hedge funds bought recently:

Apple (AAPL): Dan Loeb's Third Point previously sold out its position in Apple during the second quarter of 2011, then decided to buy back those shares at a substantially higher price of $445 a share after Apple's fourth-quarter earnings announcement. Here is how Loeb explained his Apple investment thesis in Third Point's quarterly investor letter:

"As we evaluated Apple at $445 per share, some back‐of‐the‐envelope math painted an intriguing picture. Due to its favorable working capital cycle and deferred revenue contribution, Apple has been churning out cash flow at close to 120% of earnings (actually 128% in FY2012). Looking forward to CY2012, that rate suggests cash flow in excess of $50 per share in 2012. Ignoring repatriation tax for a moment, at $445 per share less $104 per share in net cash, we were creating Apple at 6‐7x CY2012 free cash flow. Looking toward year‐end 2012, with over $150 per share in net cash, Apple's multiple dropped to 5‐6x CY2012 free cash flow. As a result, we believed we were buying in with a healthy margin of safety, a likely cash return catalyst and a favorable product cycle. This strong cash position and cash flow made the prospect of a cash return strategy very likely. Even allowing for a healthy sense of skepticism, Apple's close to $100 billion of net cash is greater than that of Microsoft, Google, Facebook and Nokia combined."

URS (URS): Larry Robbins filed a 13G last week disclosing a 3.9 million share position in URS. Glenview Capital had 3.55 million shares of URS at the end of December.

Howard Marks' Oaktree Capital (OAK) is a new favorite for several hedge funds. Greenlight Capital filed a 13G last week, disclosing a 1.68 million share position. Einhorn's $70 million investment in the company gives him a 5.5% stake. Russell Hawkins' Hawkins Capital holds an even larger position.

Barnes & Noble (BKS): You probably heard that Barry Rosenstein's Jana Partners disclosed a 7 million share position in Barnes & Noble. The stock went up dramatically after the company inked a deal with Microsoft (MSFT). Hours after the announcement Rosenstein was busy selling 1 million shares of Jana's holdings at an average price of $24.42 (read the details here).

Zillow (Z) and Yelp (YELP): Billionaire hedge fund manager Steven Cohen disclosed a 5% stake in Zillow and a 5.1% stake in Yelp this week.

Ingersoll-Rand (IR) Nelson Peltz disclosed a 7+% activist position in Ingersoll-Rand this week. Ingersoll-Rand wasn't a popular stock among hedge funds at the end of December. Mason Hawkins' Southeastern Asset Management was the only fund we track with a $100 million-plus position. Nelson Peltz's current position in the stock is valued at more than $900 million.

This commentary comes from an independent investor or market observer as part of TheStreet guest contributor program. The views expressed are those of the author and do not necessarily represent the views of TheStreet or its management.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

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.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,098.45 +18.88 0.11%
S&P 500 2,003.37 +6.63 0.33%
NASDAQ 4,580.2710 +22.5760 0.50%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs