Thomas Steyer's Farallon Buys Initial Stake in Google

BOSTON ( TheStreet) -- Thomas Steyer, the billionaire environmentalist and founder of hedge fund Farallon Capital Management, made big bets on merger mates Google ( GOOG) and Motorola Mobility ( MMI) in the third quarter.

Steyer founded Farallon Capital in 1986 and has served as the fund's managing partner. Based in San Francisco, Farallon has more than $20 billion in assets and uses numerous strategies ranging from credit to value to merger-arbitrage investments. The hedge fund has a disciplined approach to preserve capital, focusing on achieving risk-adjusted returns.

Thomas Steyer of Farallon Capital Management.

The latest merger-arbitrage investment for Steyer is Motorola Mobility, which was acquired by Google in August for $12.5 billion. At some point in the third quarter, Steyer's Farallon bought more than 10.5 million shares of Motorola Mobility, which carried a market value of nearly $400 million as of Sept. 30. That new position alone became the largest of Steyer's disclosed holdings.

Hedge funds that manage more than $100 million are required to disclose their equity holdings, options and convertible debt on a Form 13F filed to the Securities and Exchange Commission within 45 days of the end of a quarter. Funds aren't required to report short positions betting on declines. Farallon Capital ended the third quarter with 66 reported holdings with a market value of $3.8 billion.

Google was another new purchase for Steyer, as he bought about 247,000 shares of the Internet search giant. The position had a market value of $127 million as of Sept. 30, and shares of Google have rallied 20% since the reporting date.

Farallon's other new buys in the third quarter included water and air treatment company Nalco Holdings ( NLC), glass-container manufacturer Owens-Illinois ( OI), aerospace company Goodrich ( GR) and News Corp. ( NWS). In total, the hedge fund reported 16 new holdings for the third quarter.

Steyer also increased his stake in 15 companies, including big buys in large-cap companies like Comcast ( CMCSA), Visa ( V), Medco Health ( MHS), Microsoft ( MSFT), General Dynamics ( GD), Union Pacific ( UNP) and Home Depot ( HD), among others.

>>View Farallon Capital's Portfolio

On the other hand, Steyer sold completely out of stakes in 11 stocks, including companies he had just picked up in the second quarter. FedEx ( FDX), Expedia ( EXPE) and Youku.com ( YOKU), which were new purchases a quarter earlier, were dumped completely, alongside BMC Software ( BMC) and Sina ( SINA).

Farallon also cut stakes in 10 stocks, including Viacom ( VIA.B), Charles Schwab ( SCHW) and Crown Castle International ( CCI).

-- Written by Robert Holmes in Boston.

>To contact the writer of this article, click here: Robert Holmes.

>To follow Robert Holmes on Twitter, go to http://twitter.com/RobTheStreet.

>To submit a news tip, send an email to: tips@thestreet.com.
Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

If you liked this article you might like

7 Bargain-Basement Stocks That Could Rebound in 2017

7 Bargain-Basement Stocks That Could Rebound in 2017

2 Stocks Ready to Break Out Higher: Marcus & Millichap, CBRE Group

2 Stocks Ready to Break Out Higher: Marcus & Millichap, CBRE Group

Commercial Real Estate Has Room to Rise, Says Marcus & Millichap CEO

Commercial Real Estate Has Room to Rise, Says Marcus & Millichap CEO

Commercial Real Estate Solid Says Marcus & Millichap CEO

Commercial Real Estate Solid Says Marcus & Millichap CEO

Insider Trading Alert - NVEE, SJI And MMI Traded By Insiders

Insider Trading Alert - NVEE, SJI And MMI Traded By Insiders