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Hayman Advisors Update - Second Quarter Sells and Company Results

August 26, 2013 | About:
Sally Jones

Sally Jones

49 followers
Returning 340% in his firm’s first four years earned Guru Kyle Bass a reputation fast. He is also well known for his analysis of the subprime crisis when he made around a half a billion dollars betting against subprime CDOs. His company, Hayman Capital Management, is an asset management firm based in Dallas, Texas, founded in 2005. The updated portfolio of Hayman Advisors lists 6 stocks, 1 of them new, with a total value of $38 million, and a quarter-over-quarter turnover of 45%. The portfolio is heavily weighted with consumer cyclical at 39.3%.

Here are the details of four trades, one reduction and three sell outs, made by Kyle Bass, as of June 30, 2013.

Tempur Sealy International Inc. (TPX): Reduced

Impact to Portfolio: -38.17%

Up 18% over 12 months, Tempur Sealy International Inc.has a market cap of $2.32 billion; its shares were traded at around $38.35 with a P/E of 72.80.

Track historical pricing:

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Guru Action: As of June 30, 2013, Kyle Bass reduced his position by 78.71%, selling 1,267,289 shares at an average price of $45.46, for a loss of 15.6%. Current shares remaining are 342,811.

He has averaged a gain of 8% on 1,610,100 shares bought at an average price of $35.37 per share. On shares sold, he has averaged a loss of 16% on 1,267,289 shares sold at an average price of $45.46 per share.

Tempur Sealy International completed its acquisition of Sealy in March 2013. The company reported financial results for the second quarter ended June 30, 2013, highlighting a total net sales increase of 100.5% to $660.6 million in the second quarter of 2013 from $329.5 million in the second quarter of 2012. GAAP earnings per diluted share in the second quarter of 2013 were $(0.03). Adjusted EPS were $0.36 in the second quarter of 2013 as compared to GAAP EPS of $0.45 in the second quarter of 2012. GAAP net loss in the second quarter of 2013 was $1.6 million. The company reported adjusted net income of $22.3 million for the second quarter of 2013 as compared to GAAP net income of $29.1 million in the second quarter of 2012. Gross profit margin was 38.6% as compared to 50.7% in the second quarter of 2012.

Nationstar Mortgage Holdings Inc. (NSM): Sold Out

Impact to Portfolio: -33.3%

Up 90% over 12 months, Nationstar Mortgage Holdings Inc. has a market cap of $4.46billion; its shares currently trade at around $49.31 with a P/E ratio of 14.50.

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Guru Action: As of June 30, 2013, Kyle Bass sold out his position, selling 1,487,046 shares at an average price of $38.89, for a gain of 26.8%.

His highest gain of 60.4% on 687,346 shares bought at an average price of $30.75 per share was made in the fourth quarter of 2012.

Nationstar Mortgage reported quarterly net income of $123.4 million, or $1.37 per share, for the second quarter 2013 compared to $62.6 million, or $0.70 per share, in the first quarter 2013 and $36.3 million, or $0.41 per share, in the second quarter 2012.

Huntsman Corporation (HUN): Sold Out

Impact to Portfolio: -33.3%

Up 28% over 12 months, Huntsman Corporation has a market cap of $4.41 billion; its shares currently trade at around $18.25 with a P/E ratio of 45.40.

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Guru Action: As of June 30, 2013, Kyle Bass sold out his position, selling 490,800 shares at an average price of $18.29, for a loss of 0.2%.

His highest gain of 14.5% on 1,380,799 shares bought at an average price of $15.94 per share was made in the fourth quarter of 2011.

Huntsman Corporation reported second quarter 2013 highlights with a net income of $47 million compared to net income of $124 million in the prior year period and net loss of $24 million in the prior quarter. The company’s adjusted EBITDA was $304 million, a decrease of $72 million compared to $376 million in the prior year period; adjusted EBITDA increased $84 million compared to $220 million in the prior quarter. The company’s adjusted diluted income per share was $0.39 compared to $0.61 in the prior year period and $0.19 in the prior quarter, according to a company press release.

ZIOPHARM Oncology Inc. (ZIOP): Sold Out

Impact to Portfolio: -33.3%

Down 40% over 12 months, ZIOPHARM Oncology Inc. has a market cap of 248.9 million; its shares currently trade at around $2.98 with a P/B ratio of 13.05.

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Guru Action: As of June 30, 2013, Kyle Bass sold out his position, selling 316,987 shares at an average price of $1.85, for a gain of 61.1%. Prior to that, he had three consecutive quarters of losses, ranging from 32.6% - 41.6%.

ZIOPHARM Oncology Inc. reported a net loss for the second quarter of 2013 as $18.7 million, or $(0.22) per share, compared to a net loss of $23.6 million, or $(0.30) per share, for the second quarter of 2012. Research and development expenses were $14.8 million for the second quarter of 2013 compared to $18.3 million for the second quarter of 2012, according to a company press release.

Guru Kyle Bass is the managing member and principal of Hayman Advisors LP’s general partner. Hayman Advisors serves as the investment manager to the Hayman Capital Master Fund LP and Japan Macro Opportunities Master Fund LP.

Here is the complete portfolio of Kyle Bass.



Also check out:

1. Kyle Bass's Undervalued Stocks

2. Kyle Bass's Top Growth Companies

3. Kyle Bass's High Yield stocks

4. Stocks that Kyle Bass keeps buying

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About the author:

Sally Jones
Sally Jones writes about Real Time Picks. She says, "I truly enjoy watching the Gurus in realtime and telling their story."

Rating: 5.0/5 (1 vote)

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