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The Alpha of Omega Advisors - Leon Cooperman's 6 Sells

Sally Jones

Sally Jones

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According to investor tales of origin, billionaire Leon Cooperman started life as the son of a plumber and today has a net worth of around $2.5 billion. Cooperman’s multi-billion dollar hedge fund, Omega Advisors, founded in 1991, has $8.9 billion in assets under management. For nine consecutive years while at Goldman Sachs, Cooperman was voted the No. 1 portfolio strategist in Institutional Investor Magazine’s “All-America Research Team” survey.

The updated portfolio of Omega Advisors lists 74 stocks, 10 of them new, a total value at $6.52 billion, and a quarter-over-quarter turnover of 13%. The portfolio is currently weighted with top three sectors: financial services at 25.8%, energy at 20.5% and communication services at 12.6%. Guru Cooperman has averaged a 12.7% return over 12 months, according to the GuruFocus Score Board of Gurus.

Here are six of Leon Cooperman’s high-impact sells and reductions, made as of June 30, 2013:

American International Group Inc. (AIG): Reduced

Impacts Portfolio: -1.17%

Current Shares: 5,814,100

Up 39% over 12 months, American International Group Inc. has a market cap of $69.09 billion; its shares were traded at around $46.58 with a P/E ratio of 26.40.

Guru Action: As of June 30, 2013, Leon Cooperman reduced his position by 24.95%, selling 1,933,200 shares at an average price of $42.90 for a gain of 9.1%.

He has averaged a gain of 50% on 8,054,600 shares bought at an average price of $31.18 per share. On shares sold, he averaged a gain of 12% on 2,240,500 shares sold at an average price of $41.76 per share.

Track historical pricing, revenue and net income:



Merck & Co. (MRK): Reduced

Impacts Portfolio: -1.16%

Current Shares: 203,200

Up10% over 12 months, Merck & Co. has a market cap of $138.18 billion; its shares were traded at around $47.10 with a P/E ratio of 28.00.

Guru Action: As of June 30, 2013, Leon Cooperman reduced his position by 89.42%, selling 1,718,100 shares at an average price of $46.81 for a gain of 0.9%.

He has averaged a gain of 9% on 1,921,300 shares bought at an average price of $43.38 per share. On shares sold, he averaged a gain of 1% on 1,718,100 shares sold at an average price of $46.81 per share.

Track historical pricing, revenue and net income:



[/b][b]Freeport-McMoRan Copper & Gold (FCX): Sold Out[/b]

[b]Impacts Portfolio: -1.6%


Down 12% over 12 months, Freeport-McMoRan Copper & Gold has a market cap of $31.6 billion; its shares were traded at around $30.42 with a P/E ratio of 10.90.

Guru Action: As of June 30, 2013, Leon Cooperman sold out his position, selling 3,092,000 shares at an average price of $30.52, for a loss of 0.2%.

The trading history shows only one quarter of gains; in the fourth quarter of 2008, Cooperman gained 121.1% on 1,479,400 shares bought at an average price of $13.77.

Track historical pricing, revenue and net income:



Facebook Inc. (FB): Sold Out

Impacts Portfolio: -1.5%

Up 117% over 12 months, Facebook Inc. has a market cap of $100.97 billion; its shares were traded at around $41.28 with a P/E ratio of 193.70 and a P/B of 7.90.

Guru Action: As of June 30, 2013, Leon Cooperman sold out his position, selling 3,665,300 shares at an average price of $25.62, for a gain of 61.8%.

The trading history shows three quarters of double-digit gains, dating back to the fourth quarter of 2012, also his highest quarter, when he made a gain of 76.5% on 3,161,300 shares bought at an average price of $23.49.

Track historical pricing, revenue and net income:



Covidien PLC (COV): Sold Out

Impacts Portfolio: -0.93%

Up 19% over 12 months, Covidien PLC, a medical instruments and supply company, has a market cap of $27.75 billion; its shares were traded at around $60.17 with a P/E ratio of 16.00.

Guru Action: As of June 30, 2013, Leon Cooperman sold out his position, selling 887,300 shares at an average price of $57.36, for a gain of 5.2%.

The trading history shows five prior quarters of double-digit gains, topping out in his first quarter of holding, the second quarter of 2009. He gained 91.72% on 80,000 shares bought at an average price of $31.47.

Track historical pricing, revenue and net income:



EV Energy Partner LP (EVEP): Sold Out[/b]

[b]Impacts Portfolio: -0.81%


Down 40% over 12 months, EV Energy Partner LP has a market cap of $1.57 billion; its shares were traded at around $36.71 with a P/E ratio of 3.70.

Guru Action: As of June 30, 2013, Leon Cooperman sold out his position, selling 953,342 shares at an average price of $42.66, for a loss of 13.5%.

Cooperman held for only two quarters. In the first quarter of 2013, he lost 34.2% on 953,342 shares bought at an average price of $56.11.

Track historical pricing, revenue and net income:



Omega Advisors Inc. was founded in 1991 by Leon G. Cooperman. After 25 years of service, Cooperman retired in 1991 from his position as general partner of Goldman, Sachs & Co., and as chairman and CEO of Goldman Sachs Asset Management, in order to organize his own company. As chairman of Omega Advisors, Guru Cooperman is focused on value investing.

Here is the complete portfolio of Leon Cooperman.



Also check out:

1. Leon Cooperman's Undervalued Stocks

2. Leon Cooperman's Top Growth Companies

3. Leon Cooperman's High Yield stocks

4. Stocks that Leon Cooperman keeps buying

Use the GuruFocus Value Screen to find 52-Week Lows and discover potentially deep value stocks held by billionaire Guru investors.

GuruFocus Real Time Picks reports the stock purchases and sales that Gurus have made within the prior 2 weeks. The report time lag can be as short as 2 days after the date of the transaction. This feature is for Premium Members only.

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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: 3.3/5 (6 votes)

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