The New Buys of First Quarter 2013
AIG Warrants (NYSE:AIG.WS)
Klarman bought 638,943 AIG warrants in the first quarter, which have a value of $9.71 million. AIG issued warrants in January 2011 as part of its recapitalization. The warrants grant the holder the right to purchase AIG shares at $45 per share at any time in the next 10 years. The warrants reached a 52-week high of $19.75 this week.
Klarman bought 207,300 shares of his third largest new buy at $52 per share in the first quarter. The current price is $64.70. Klarman traded a larger holding several years ago, buying shares at an average price of $30 and selling two quarters later at an average price of $37.
Directv is a provider of digital television entertainment in the U.S. and Latin America. Directv has a market cap of $35.91 billion; its shares were traded at around $64.71 with a P/E ratio of 13.80 and P/S ratio of 1.30. Directv had an annual average earnings growth of 28.5% over the past five years.
Citigroup Warrants (C.WS)
Klarman in his second largest new holding purchased 94,137,507 warrants of Citigroup (NYSE:C), which have a value of $47.63 million.
Citigroup warrants are now trading at $0.62, near their 52-week high of $0.63, and off their 52-week low of $0.29.
Elan Corp. PLC (ELN)
Klarman bought 9,126,227 shares of Elan Corp. PLC, his largest new holding, at an average price of $11 per share in the first quarter. The stock gained 4% since then from his average purchase price.
Elan Corp. is an Ireland-based neuroscience-based biotech company working to develop much-needed medical therapies. Elan shareholders filed a lawsuit this week against guru Steven Cohen of SAC Capital for alleged insider trading.
Elan Corp PLC has a market cap of $6.91 billion; its shares were traded around $11.45 with a P/S ratio of 853.30 and P/B of 10.6.
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