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Omega Advisors’ Q3 Portfolio Updates: Top Sells are CTXS, OCN and WLP
Posted by: Dianne Tordillo (IP Logged)
Date: November 14, 2012 11:42AM
Hedge fund Omega Advisors, founded by former Goldman Sachs Asset Management CEO and legendary Guru investor Leon Cooperman, reported a total of 45 transactions in its third quarter portfolio updates, consisting of the following:
As of the end of the third quarter, Omega Advisors’ portfolio included 77 stocks, with a total value of almost $5 billion, and a quarter-over-quarter turnover rate of 13 percent.
The fund’s portfolio sector weighting is as follows:
Below are three stocks among Omega Advisors’ third quarter sells that made the most impact to the fund’s portfolio.
Cirtrix Systems Inc. (CTXS)
Selling its entire stake of cloud computing company, Citrix Systems Inc. (CTXS), Omega’s transaction impacted its portfolio by 2.1%. Omega started its holding history with Citrix in the first quarter of 2011, owning 773,300 shares of the company. The fund had about 1.12 million shares of Citrix before selling all of them in the third quarter.
Omega started its reductions of its Citrix stake in the first quarter of 2012, after four consecutive purchases in the prior year.
Over the years, Citrix as a company showed solid Financial and Profitability and Growth performances, ranking a 10 and an 8 on GuruFocus. Its Business Predictability is also ranked to impress, at 4 out of 5 stars.
Its current trading price is $58.46 per share, a little higher than some of its competitors as portrayed below.
CTXS data by GuruFocus.com
Ocwen Financial Corp. (OCN)
After reducing its stake of commercial loss mitigation servicer, Ocwen Financial Corp. (OCN) by 91.97 percent, Omega Advisors were left with a share count of 292,300 after the transaction.
Prior to the reduction that impacted its portfolio by 1.38 percent, Omega owned about 3.6 million shares of Ocwen Financial reported in the second quarter.
The three months in the third quarter saw a rising price of the stock, leading up to its 10-year peak price seen in more recent weeks.
OCN data by GuruFocus.com
Although its revenue per share growth has been in a five-year decline at a rate of 14.9 percent, its operating margin is experiencing a positive upward trend line revealing its efficiency in business operations.
Currently trading at $33.95 per share, (between its minimum price of $18.91 and exceeding its former recorded maximum price of $28.10), Ocwen Financial’s price ratios are actually experiencing highs as well; its P/E ratio is close to a 10-year high at 35, its P/B ratio is close to its three year high at 3.24 and its P/S ratio is close to its three-year high at 10.6.
Ocwen Financial receives a 1 out of 5 stars in Business Predictability on GuruFocus.
WellPoint Inc. (WLP)
Omega Advisors’ 37.1 percent reduction of health care stock, WellPoint Inc. (WLP), in the third quarter brought its shares down to less than 1.3 million shares, while it reported a little over 2 million shares in this year’s second quarter.
WellPoint is a company that not only provides health care plans to consumers, but also life and disability insurance, dental, vision and behavioral health benefit services, according to its website.
The $18.26 billion company has showed outstanding results in revenue per share, revenue growth, free cash flow growth and book value growth. View WellPoint’s 10-year financial data here.
Its six Good Signs on GuruFocus show its price ratios in the low end, where as the company’s dividend yield is close to a one-year high, all outnumbering its two Severe Warning signs and two Medium Warning Signs.
View the rest of Omega Advisors’ portfolio updates here. Also view the funds’ top holdings, undervalued stocks, top growth companies and high yield stocks.
Guru Discussed: Leon Cooperman: Current Portfolio, Stock Picks
Stocks Discussed: CTXS, OCN, WLP,
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