Most interesting was a new position of 4.4 million shares in Reed Elesvier (ENL). The $10.5 billion market cap publishing company has moved up from $20 per share to $28 per share since May 2012.
Reed is a niche publisher for professionals such as doctors and lawyers. The company creates scientific and technical books and does not have a major consumer presence.
From a valuation perspective, Reed Elsevier trades at 15 times trailing earnings and 11 times forward earnings estimates. The company has a wide moat with some of its products. For example, Lexis Nexis is the leading legal publisher and most attorneys buy case summaries from the company.
The company pays a 1.9% dividend and the company is conservatively financed with no debt.
Reed is a top-10 position for Paul Singer and accounts for 1.85% of his portfolio. The hedge fund purchased 4.4 million shares in the three-month period prior to Sept. 30, 2012. The prices paid were between $23 to $27 per share.