Publish date:

Comcast, Lululemon, EQT and Other New Activist Investments

Quarterly filings provide a window into new allocations made by insurgent fund managers Paul Singer, Glenn Welling, Barry Rosenstein and Keith Meister. Could M&A campaigns be next?

Activist investors offered up a window into their latest allocations, raising prospects that insurgency campaigns could be next at dozens of new investments, including Comcast Corp. (CMCSA) - Get Comcast Corporation Class A Report , Lululemon Athletica Inc. (LULU) - Get Lululemon Athletica Inc (LULU) Report and Charter Communications Inc. (CHTR) - Get Charter Communications, Inc. Class A Report .

The Deal took a look at the latest quarterly filings issued Tuesday and Wednesday by activist fund managers Paul Singer, Glenn Welling, Barry Rosenstein and Keith Meister. The likelihood that one of these investors engages in an M&A-focused campaign or some other type of share-price improving insurgency in the months to come at some of these investments is pretty high. Each of these investors has on multiple occasions launched proxy battles to install dissident directors in the past—it's possible they could do so again at one of their latest investments to help drive a spike in shareholder value. 

Keith Meister

According to a quarterly securities filing issued Tuesday, activist investor Meister and his Corvex Management acquired a $94 million stake in Comcast in the third quarter of 2017. Corvex also liquidated its positions in FedEx Corp. (FDX) - Get FedEx Corporation Report , Regions Financial (RF) - Get Regions Financial Corporation Report and Time Warner (TWX) , which is in the midst of a blockbuster merger with AT&T (T) - Get AT&T Inc. Report .

Singer and his fund, Elliott Management LP, acquired new positions in Charter Communications, Gentex Corp. (GNTX) - Get Gentex Corporation Report , Gentherm Inc. (THRM) - Get Gentherm Incorporated Report , Investors Bancorp Inc. (ISBC) - Get Investors Bancorp Inc Report , Ocean Rig UDW Inc. (ORIG) - Get Ocean Rig UDW Inc Class A Report , Wayfair Inc. (W) - Get Wayfair, Inc. Class A Report and Tenneco Inc. (TEN) - Get Tenneco Inc. Class A Report . The fund also allocated a new 2.3 million position worth about $115 million in Taubman Centers Inc. (TCO) - Get Taubman Centers, Inc. Report , where another activist, Jonathan Litt of Land & Buildings Investment Management is engaging in an ongoing battle. 

In an interesting side note, another activist fund, Blue Harbour, has a large investment and collaborative campaign underway at Investors Bancorp as well as a director on the investment firm's board. 

The fund also hiked its stake in NXP Semiconductors Inc. (NXPI) - Get NXP Semiconductors NV Report to 16.4 million shares, about $1.8 billion, this quarter, up from 12.3 million shares and a $1.4 billion allocation last quarter. Qualcomm is trying to acquire NXP Semiconductors for $47 billion including debt but Elliott is involved in a "bumpitrage" campaign seeking to have it pay more than its current $110 per share deal. Complicating matters is a $130 billion hostile Broadcom Ltd. (AVGO) bid for Qualcomm. The chipmaker may be incentivized to pay more to buy NXP and close that deal, which could act as a poison pill on Broadcom's bid.

Welling's Engaged Capital acquired new positions in the third quarter at Celestica Inc. (CLS) - Get Celestica Inc. Report , Dexcom Inc. (DXCM) - Get DexCom, Inc. Report , Diebold Nixdorf Inc. (DBD) - Get Diebold Nixdorf Incorporated Report , Imax Corp. (IMAX) - Get IMAX Corporation Report , NCR Corp. (NCR) - Get NCR Corporation Report , Tenet Healthcare Corp. (THC) - Get Tenet Healthcare Corporation Report and Gigamon (GIMO) , which was sold to Elliott's buyout shop division in October for $1.6 billion. Atlantic Investment Management, another activist, has a 7.9% Diebold stake and campaign underway to press the company to consider "strategic alternatives." Sometimes insurgent Mario Gabelli also owns a 7.5% Diebold stake.

Image placeholder title

TheStreet Recommends

And Rosenstein's Jana Partners LLC acquired new stakes in Lululemon Athletica, Cornerstone OnDemand Inc. (CSOD) - Get Cornerstone Ondemand, Inc. Report , D.R. Horton Inc. (DHI) - Get D.R. Horton, Inc. Report , Nielsen Holdings plc (NLSN) - Get Nielsen Holdings Plc (NLSN) Report , Oracle Corp. (ORCL) - Get Oracle Corporation Report  and UnitedHealth Group Inc. (UNH) - Get UnitedHealth Group Incorporated Report . Both Jana Partners and another major activist, Starboard Value's Jeff Smith accumulated significant positions Jack in the Box Inc. (JACK) - Get Jack in the Box Inc. Report this quarter, moves suggesting that the two funds have a razor focus on the fast-food chain's strategic review for its Qdoba Restaurant unit.

Suddenly Jack in the Box Is a Hot Activist Investor Target

Buffalo Wild Wings Sale Would Be a Win For This Outspoken Activist

Ackman: I'll Be Back Next Year If ADP Doesn't Perform

Jana also liquidated positions in Anadarko Petroleum Corp. (APC) - Get Anadarko Petroleum Corporation Report , Blackhawk Network Holdings Inc. (HAWK) , Blue Apron Holdings Inc. (APRN) - Get Blue Apron Holdings, Inc. Class A Report , Cognizant Technology (CTSH) - Get Cognizant Technology Solutions Corporation Class A Report , Hewlett Packard Enterprises (HPE) - Get Hewlett Packard Enterprise Co. (HPE) Report , CDK Global Inc. (CDK) - Get CDK Global Inc Report and a few other companies. Cognizant has been under pressure in recent months by Elliott Management, a large shareholder, to take on more leverage and engage in M&A. CDK in 2016 reached an agreement to add two Elliott Management-backed dissident directors, in a move that raised prospects that the software-maker could sell itself down the road. 

Barry Rosenstein

Comcast and AT&T are holdings in Jim Cramer's Action Alerts PLUS Charitable Trust Portfolio . Want to be alerted before Cramer buys or sells (CMCSA) - Get Comcast Corporation Class A Report or   (T) - Get AT&T Inc. Report ? Learn more now.

Editor's note: This article originally appeared on The Deal , our sister publication that offers sophisticated insight and analysis on all types of deals, from inception to integration. Click here for a free trial.

More of What's Trending on TheStreet: