The largest purchase for the quarter was the PowerShares QQQ Trust ETF (Nasdaq: QQQ). Elliott Management increased its position in the company by $559.3 million and the stock now represents 14.5% of the firm’s portfolio (largest position).
The next largest purchase was iShares Russell 2000 ETF (ARCX: IWM). The investment manager increased its position in the ETF by $551.1 million with the holding now representing 3.5% of the firm’s portfolio.
Elliott Management’s 7 Biggest Sells
Here’s the list of biggest position reductions determined by comparing the last two filings:
Ticker Name Sold ($mil) % Of Portfolio
HYG ISHARES TR $741.7 3.6%
ECA ENCANA CORP $441.8 2.6%
SMH VANECK VECTORS ETF TR $383.9 0.8%
MPC MARATHON PETE CORP $320.5 1.9%
AA ALCOA CORP $292.2 1.0%
XLE SELECT SECTOR SPDR TR $273.9 1.6%
XOP SPDR SERIES TRUST $184.0 4.5%
The largest sale for the quarter was iShares iBoxx High Yield Corporate Bond ETF (ARCX: HYG). Elliott Management reduced its position in the ETF by $741.7 million and the holding now represents 3.6% of the firm’s portfolio.
The largest stock sale was Encana Corporation (NYSE: ECA). Elliott Management exited its position in the company by selling its $441.8 million stake.
Elliott Management’s Recent Price Pull-Back Stocks
To find stocks in the firm’s portfolio that may be unpopular at the moment and trading at cheap valuations, I ranked the firm’s holdings by price pullbacks. The ranking table below lists the stocks in Elliott Management’s portfolio by stock price performance over the last 30 days.
Ticker Name Price 1-mo Ago Current Price % Change 1-mo
CRMD CORMEDIX INC $0.47 $0.30 -35.9%
AA ALCOA CORP $54.00 $46.64 -13.6%
QEP QEP RES INC $10.27 $8.99 -12.5%
DVMT DELL TECHNOLOGIES INC $82.74 $72.58 -12.3%
HES HESS CORP $53.69 $47.95 -10.7%
PAH PLATFORM SPECIALTY PRODS COR $11.81 $10.64 -9.9%
SAH SONIC AUTOMOTIVE INC $22.45 $20.30 -9.6%
CorMedix Inc (NYSEMKT: CRMD) stock price has fallen by -35.9% over the last month. It may be worth taking a closer look at the stock, especially after this recent decline.
Elliott Management’s 7 Bullish Analyst Targets
Banks and brokerages often release 12 to 18-month price targets for the stocks they cover. Analyst upgrades and downgrades alone can often impact a company’s stock price.
“In the short run, the market is a voting machine but in the long run, it is a weighing machine.” – Benjamin Graham
The table below ranks stocks in Elliott Management’s portfolio with most bullish analyst targets:
Ticker Name Upside (Analyst Target) % Of Portfolio
QEP QEP RES INC 50.5% 0.6%
MITL MITEL NETWORKS CORP 40.1% 0.4%
DVMT DELL TECHNOLOGIES INC 37.8% 2.9%
PAH PLATFORM SPECIALTY PRODS COR 35.0% 0.7%
AA ALCOA CORP 32.2% 1.0%
TDW TIDEWATER INC NEW 30.3% 0.1%
NRG NRG ENERGY INC 25.4% 1.8%
QEP Resources, Inc. (NYSE: QEP) appears to be the most undervalued stock in the fund based on the average price target from Wall Street analysts.
A Fearless Operator
Bloomberg called him the World’s Most Feared Investor, while Fortune magazine said he is one of the “smartest and toughest money managers in the hedge fund industry.” Others describe him as a vulture capitalist and the poster boy for greed.
Paul Singer is the founder and CEO of Elliot Management Corporation, one of the oldest hedge funds on Wall Street. He founded the company in 1977 after a short career as a lawyer. Today his company manages $23 billion, and Singer has built a personal fortune of $2.9 billion.
Singer is no stranger to controversy. He is most famous for suing the Argentinian government over bonds the country defaulted on. Singer’s firm eventually impounded an Argentinian naval ship in a Ghanaian port, using the ship as collateral in negotiations. The story ended with Argentina being forced to sell new bonds to repay the original bondholders.
The fight with Argentina was just one of the controversies Singer has been involved in. Another was when he started the chain of events at Samsung in 2015 that ended with the impeachment of the President of South Korea. He more recently got into a bidding war with Warren Buffett for control of a Texas Utility company and he also tried to force a restructuring at BHP Billiton, the world’s largest mining company.
Most can agree that with thousands of stocks traded on U.S. exchanges, doing thorough research on each one is nearly impossible for smaller investors. Leveraging the resources of the largest hedge funds on Wall Street (such as Elliot Management) can be a powerful way to narrow down the list.
This article was republished with permission from Vintage Value Investing.