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Selling Giants - Paul Singer’s Elliott Management Update

September 13, 2013 | About:
Sally Jones

Sally Jones

49 followers
With a background in law, Guru Paul Singer is good at slaying giants, like his recent legal victory over Argentina, and now he is selling a few giants.

In the second quarter of 2013, Paul Singer, founder of Elliott Management, sold out five companies and reduced Delphi Automotive PLC (DLPH), which averaged gains of 92% for him across seven quarters and is up 83% over 12 months. Another theme of Singer’s recent sells was unloading two large positions in the giants of software infrastructure and computing, Microsoft Corporation (MSFT) and Oracle Corporation (ORCL).

Paul Singer’s recently updated portfolio lists 45 stocks, five of them new, with a total value of $5.19 billion and a quarter-over-quarter turnover of 23%. The hedge fund portfolio is currently weighted with top three sectors: technology at 35.5%, energy at 24.3% and consumer cyclical at 19.3%. Elliott Management has total assets of around $22.44 billion, according to the New York Post. Here are all six of Singer’s sells, as of June 30, 2013:



Oracle Corporation (ORCL): Sold Out


Portfolio Impact: -0.07%

Up 1% over 12 months, Oracle Corporation has a market cap of $151.84 billion; its shares were traded at around $32.79 with a P/E ratio of 14.60.

Originally begun in June 1977, Oracle Corporation is a provider of enterprise software and computer hardware products and services. The company provides technologies of cloud computing, including database and middleware as well as web-based applications, virtualization, clustering and systems management. It also provides cloud services as well as software and hardware products to other cloud service providers, both public and private.

Guru Action: As of June 30, 2013, Paul Singer sold out his position, selling 100,300 shares at an average price of $33.18, for a loss of 0.9%. He held for only two quarters and also took a loss of 5.5% in the first quarter of 2013 when he bought 100,300 shares at an average price of $34.78 per share.

Microsoft Corporation (MSFT): Sold Out

Portfolio Impact: -0.06%

Up 6% over 12 months, Microsoft Corporation has a market cap of $272.31 billion; its shares were traded at around $32.69 with a P/E ratio of 12.50.

Founded in 1975, Microsoft Corporation generates revenue by developing, manufacturing, licensing, and supporting a wide range of software products and services for many different types of computing devices.

Guru Action: As of June 30, 2013, Paul Singer sold out his position, selling 100,000 shares at an average price of $32.76, for a loss of 0.1%. He also held MSFT for only two quarters and made a gain of 18.2% in the first quarter of 2013 when he bought 100,000 shares at an average price of $27.69 per share.

JPMorgan Chase & Co. (JPM): Sold Out

Portfolio Impact: -0.92%

Up 29% over 12 months, JPMorgan Chase & Co. has a market cap of $200.48 billion; its shares were traded at around $52.24 with a P/E ratio of 8.90.

Incorporated in 1968, JPMorgan Chase & Co. is a financial services holding company and banking institution with operations in more than 60 countries.

Guru Action: As of June 30, 2013, Paul Singer sold out his position, selling 931,069 shares at an average price of $50.85, for a gain of 4.8%. He held JPM for only two quarters and also made a gain of 11% in the first quarter of 2013 when he bought 931,069 shares at an average price of $48 per share.

Track historical pricing, revenue and net income:

1379023978694.png

ServiceNow Inc. (NOW): Sold Out

Portfolio Impact: -0.03%

Up 33% over 12 months, ServiceNow Inc. has a market cap of $6.82 billion; its shares were traded at around $49.44 with a P/B ratio of 25.70.

ServiceNow Inc. is a provider of cloud-based services that automate enterprise IT operations for businesses.

Guru Action: As of June 30, 2013, Paul Singer sold out his position, selling 43,852 shares at an average price of $38.16, for a gain of 30.7%. He also held NOW for only two quarters and made a gain of 57.1% in the first quarter of 2013 when he bought 43,852 shares at an average price of $31.76 per share.

Delphi Automotive PLC (DLPH): Reduced

Impacts Portfolio: -3.63%

Up 83% over 12 months, Delphi Automotive PLC has a market cap of $17.46 billion; its shares were traded at around $56.56 with a P/E ratio of 16.80.

Organized in 2009, Delphi Automotive is a global vehicle components manufacturer that provides electrical and electronic, powertrain, safety and thermal technology solutions to the global automotive and commercial vehicle markets. Its customers include the 25 largest automotive original equipment manufacturers (OEMs) in the world. Delphi Automotive operates approximately 126 manufacturing facilities and 15 major technical centers utilizing a regional service model that enables them to efficiently and effectively serve its global customers from low cost countries. The company has presence in around 32 countries and hires over 18,000 scientists, engineers and technicians.

Guru Action: As of June 30, 2013, Paul Singer reduced his position by 17.9%, selling 3,919,783 shares at an average price of $46.86, for a gain of 20.1%. Current shares stand at 17,982,200. Singer has held since the fourth quarter of 2011, averaging a gain of 92% on 34,507,989 shares bought at an average price of $29.26 per share. On shares sold, he averaged a gain of 55% on 16,525,789 shares sold at an average price of $36.42 per share.

Track historical pricing, revenue and net income:

1379025233024.png

GRAVITY Co. Ltd. (CRVY): Sold Out

Down 15% over 12 months, GRAVITY Co. Ltd. has a market cap of $31.1 million; its shares were traded at around $1.12 with a P/B ratio of 0.40.

Incorporated in Korea in 2000, GRAVITY Co. Ltd. is a developer and publisher of online games in Japan, Taiwan, Brazil, the Philippines and Thailand. The company offers eleven online games worldwide and has two online games being developed by third parties. Its four product lines are: MMORPGs; other online games; mobile games; and game-related products and services, including animation and character-based merchandise. The company's main product, Ragnarok Online, is commercially offered in Korea and 59 other countries and markets.

Guru Action: As of June 30, 2013, Paul Singer sold out his position, selling 10,000 shares at an average price of $1.20, for a loss of 6.7%. He held for two quarters only, and also had a loss of 17.6% when he bought the shares in the first quarter of 2013 at an average price of $1.36.

Track historical pricing, revenue and net income:

1379023693314.png



Study the rest of Paul Singer’s trades.



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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: 3.5/5 (6 votes)

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