In this article, we’ll take a look at the 8 latest stock picks from activist investor Paul Singer’s portfolio. To skip our detailed analysis of these stocks and Singer’s investment information, you can go directly to Activist Investor Paul Singer’s 5 Latest Stock Picks.
Once dubbed “the world’s most feared investor”, Paul Elliot Singer is the founder, chairman and co-CEO of Elliott Management. Known for his high-profile and often combative trades, his hedge fund has a reputation for successfully seeking out and exploiting market weakness. Having started Elliott Management in 1977, after a brief stint in corporate law, with $1.3 million in start-up capital, Singer’s market businesses have always been successful, with average annual returns of nearly 14 %. Although the 78-year-old isn’t as flashy or public as campaigners such as Carl Icahn, his ventures have spanned sectors from tech and telecommunications to entertainment and energy, helping him amass a following. fortune worth around $4.3 billion, alongside a spot on Forbes’ richest list.
Elliott Management, from the day of its inception, has focused on distressed stocks. While it started out as a convertible arbitrage-focused hedge fund, Paul Singer slowly shifted the fund’s focus to companies and later countries facing financial difficulties. In the 1990s, Paul Singer’s company bought up the troubled sovereign debt of countries like Peru and Argentina, resulting in multimillion-dollar repayments. These methods, which sometimes included corporate debt games, earned him the title of “doomsday investor” in a 2018 article in The New Yorker magazine. A more recent excursion took place in March this year amid chaos in the nickel market on March 8, 11 days after the outbreak of the Ukraine-Russia conflict, where the activist fund founded by Paul Singer claimed over $450 million in damages to the London Metal Exchange for using an illegal method to disrupt trade.
Singer, who was born and raised in New Jersey, and studied psychology at the University of Rochester before earning a JD from Harvard Law School in 1969, was credited among those who accurately predicted the crisis. financial year of 2008 – a period when he made significant profits from credit default swaps that bet leveraged companies would collapse.
At the end of June, Singer’s Elliot Management said it managed $8.67 billion in its investment portfolio. The fund has liquidated all of its holdings in 10 companies and reduced its holdings in 4 companies. In contrast, the fund made 9 additions to its portfolio while increasing its holdings in 11 different names. Elliot Management’s top 10 holdings at the end of the second quarter included names like Marathon Petroleum Corp (NYSE:MPC), Peabody Energy Corporation (NYSE:BTUs) and Suncor Energy Inc. (NYSE:SU).
Paul Singer of Elliott Management
The following data comes from Elliott Management’s most recent 13F filing with the SEC. At Insider Monkey, we track the portfolios of approximately 895 hedge funds as of the close of Q2 2022. For this article, we’ve selected the 8 stocks that Paul Singer added to Elliott Management’s latest 13F filing with the SEC for the trimester. until June 30.
Activist Investor Paul Singer’s 8 Latest Stock Picks
8. Western Digital Corporation (NASDAQ:WDC)
Elliott Managementit is Value of stake: $53.1 million
Percentage of Elliott Management’s 13F portfolio: 0.61%
Number of hedge fund holders: 43
Western Digital Corporation (NASDAQ:WDC) is an American computer hard drive manufacturer and data storage company that designs, manufactures and sells data technology products, including storage devices, data center systems data and cloud storage services. The company sells its products under the following brands: Western Digital, G-Technology, SanDisk and WD. According to Elliot Management 13F filings, the fund held 1.18 million shares of Western Digital Corporation (NASDAQ:WDC) worth $53.1 million at the end of Q2 2022, representing 0, 61% of the investment company’s portfolio.
On September 19, Barclays analyst Tom O’Malley lowered Western Digital Corporation’s (NASDAQ:WDC) price target to $40 from $55 and retained an equal weight rating on the stock. The analyst lowered the global hard disk drive forecast for this year and next to reflect continued consumer weakness. Despite the general weakness, the analyst believes that prices have held up, reflecting the shift in mix towards proximity. However, while this is a short-term positive effect, O’Malley thinks it is unlikely to persist.
According to the company’s fourth quarter earnings report released Aug. 5, Western Digital Corporation Inc (NASDAQ: WDC) reported earnings per share of $1.78, beating market estimates of $0.06. Additionally, the company’s revenue for the quarter was $4.53 billion.
At the end of the second quarter of 2022, 43 hedge funds were bullish on Western Digital Corporation (NASDAQ: WDC). These funds held collective stakes worth $894.4 million in the company. This is compared to 45 positions in the previous quarter with stakes of $1.03 billion. Lyrical Asset Management was the largest shareholder of Western Digital Corporation (NASDAQ:WDC) at the end of the second quarter, with a stake value of $177.15 million.
Marathon Petroleum Corp (NYSE:MPC), Peabody Energy Corporation (NYSE:BTU) and Suncor Energy Inc. (NYSE:SU) are some of the prominent names along with Western Digital Corporation (NASDAQ:WDC) that Paul Singer has added to his wallet .
seven. Take-Two Interactive Software, Inc. (NASDAQ:TWO)
Elliott Managementit is Value of stake: $33 million
Percentage of Elliott Management’s 13F portfolio: 0.38%
Number of hedge fund holders: 66
Take-Two Interactive Software, Inc. (NASDAQ: TTWO) is an American video game holding company that operates as a developer, publisher and distributor of interactive entertainment for consumers worldwide. Based in New York, it has two major publishing labels, Rockstar Games and 2K, which operate in-house game development studios. The stock was a new addition to Paul Singer’s Q2 2022 portfolio. His hedge fund had a stake of about $33 million at the end of the quarter.
According to BofA analyst Omar Dessouky, the leaked images of Grand Theft Auto 6 are “slightly negative” for shares of Take-Two Interactive Software, Inc. (NASDAQ:TTWO) as they provide further evidence that the game is not is still not ready for a 2023 release. Additionally, Dessouky suggests that Rockstar’s valuable intellectual property may also have been stolen during the leaks. He maintained a neutral rating on the company’s stock, alongside a price target of $130.
In the second quarter of 2022, 66 of 895 hedge funds tracked by Insider Monkey were bullish on Take-Two Interactive Software, Inc. (NASDAQ: TTWO), holding shares worth $2 billion. At Simon Sadler’s Capital Segantii was the largest shareholder with ownership of 23,500 shares valued at $287.94 million.
here Did Madison Funds specifically say about Take-Two Interactive Software, Inc. (NASDAQ:TTWO) in its Q2 2022 letter to investors:
“Take-Two Interactive Software, Inc.. (NASDAQ: TTWO) is a leading video game publisher. Take-Two is renowned for the high quality of its games, having released industry favorites such as Grand Theft Auto and NBA2K.
The video game industry itself has abandoned much of its boom and bust patterns to become a more stable and predictable enterprise with high barriers to entry, established title franchises, and high levels of recurring in-game revenue streams. The company has invested heavily to increase the number of new title launches over the next few years, a favorable setup that we believe is not fully reflected in its share price.
6. Polestar Automotive Holding UK PLC (NASDAQ: PSNY)
Elliott Managementit is Value of stake: $13.8 million
Percentage of Elliott Management’s 13F portfolio: 0.15%
Number of hedge fund holders: 12
Polestar Automotive Holding UK PLC (NASDAQ: PSNY) is a holding company of Swedish automotive brand Polestar, which was established in 1996 by Volvo Cars partner Polestar Racing and acquired in 2015 by Volvo. The electric vehicle maker delivered 21,185 cars in the first six months of 2022 compared to 9,510 for the same period in 2021, while its gross profit rose 49% for the period due to higher Polestar sales 2, partially offset by product and market. to mix together. Activist investor Paul Singer said he owned about 1.56 million PSNY shares at the end of Q2 2022, worth about $13.8 million.
Earlier in August, Deutsche Bank analyst Emmanuel Rosner launched coverage of Polestar Automotive Holding UK PLC (NASDAQ:PSNY) with a Hold rating and a price target of $10. The analyst believes that Polestar’s main strength is its “intimate partnership” with Geely and Volvo, which has created a lean business model, reducing manufacturing and supply risks, and ultimately enabling the company to focus on designing, expanding and building the brand. The analyst adds that Polestar Automotive Holding UK PLC (NASDAQ:PSNY), unlike many other start-ups, has already delivered more than 50,000 vehicles worldwide since it began production the previous year.
On August 16, Polestar Automotive Holding UK PLC (NASDAQ: PSNY) confirmed plans to put the Polestar concept electric roadster into production. The production car is set to launch in 2026 as the Polestar 6 electric performance roadster. Previously revealed in March, the electric roadster concept builds on the design and technology defined by the Polestar Precept.
Alongside Marathon Petroleum Corp (NYSE:MPC), Peabody Energy Corporation (NYSE:BTU) and Suncor Energy Inc. (NYSE:SU), Polestar Automotive Holding UK PLC (NASDAQ:PSNY) is an Elliot Management-owned stock of Paul Singer at the end of the second trimester.
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Disclosure. None. Activist Investor Paul Singer’s 8 Latest Stock Picks is originally published on Insider Monkey.