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Louis Moore Bacon’s Prolific Selling in Review

November 24, 2013 | About:
Sally Jones

Sally Jones

49 followers
The stocks bought by Louis Moore Bacon over the past 12 months averaged a return of 21.25%. As of the third quarter, the portfolio of Moore Capital Management LP lists 348 stocks, 171 of them new, a total value at $4.70 billion, with a quarter-over-quarter turnover of 28%. The portfolio is weighted with top three sectors: ETF, options, preferred at 37.5%, financial services at 17.9%, and consumer cyclical at 13%.

In the third quarter, Bacon reduced or sold out around 120 companies. After eight quarters of gains, Bacon sold out Yum! Brands Inc., an international go-getter in the fast food restaurant business with brands KFC, Pizza Hut and Taco Bell. Based in Louisville, Kentucky, Yum! Brands has around 40,000 restaurants in more than 130 countries. With revenue of more than $13 billion last year, Yum! Brand Inc. is a Fortune 500 company, ranked #201.

In third quarter, Yum! Brands Inc.’s total international development included 364 new restaurants with 79% of them in emerging markets. The company reported earnings of $0.33 per share for the third quarter of 2013. Two days ago, Yum’s board of directors authorized the company to repurchase up to $750 million in additional shares of common stock and declared a dividend of $0.37 per share of common stock, according to a company press release.

Here are the top four sell outs made by Bacon in the third quarter of 2013.

Yum! Brands Inc.(YUM)

Impacts Portfolio: -0.68%

Up 6% over 12 months, Yum! Brands Inc. has a market cap of $34.87 billion; its shares were traded at around $78.30 with a P/E ratio of 32.80. The dividend yield is 1.76%.

Guru Action: As of Sept. 30, 2013, Louis Moore Bacon sold out his holding, selling 410,000 shares at an average price of $72.14, for a gain of 8.5%, the holding’s lowest point in the history.

Over eight gaining quarters, Bacon’s highest gains of 89.1% and 83.7% were made in the second and third quarters of 2010, respectively.

Track historical share pricing, revenue and net income:

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CBRE Group Inc. (CBG)

Impacts Portfolio: -0.649%

Up 29% over 12 months, CBRE Group Inc., a real estate company, has a market cap of $7.75 billion; its shares were traded at around $23.43 with a P/E ratio of 20.80. The company does not pay a dividend.

Guru Action: As of Sept. 30, 2013, Louis Moore Bacon sold out his holding, selling 1,150,000 shares at an average price of $23.15, for a gain of 1.2%.

With only one losing quarter out of eight quarters, Bacon’s highest gain of 51.2% was made on a new buy of 675,000 shares at an average price of $15.50 in the fourth quarter of 2011.

Track historical share pricing, revenue and net income:

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Synovus Financial Corp. (SNV)

Impacts Portfolio: -0.55%

Up 40% over 12 months, Synovus Financial Corp., a banking company, has a market cap of $3.23 billion; its shares were traded at around $3.32 with a P/E ratio of 3.80. The dividend yield is 1.20%.

Guru Action: As of Sept. 30, 2013, Louis Moore Bacon sold out his holding, selling 7,800,000 shares at an average price of $3.25, for a gain of 2.2%, the holdings lowest gain.

Over six quarters, Bacon’s highest gains of 36.1% and 39.5% were made in the fourth quarter of 2009 and the fourth quarter of 2012, respectively.

Track historical share pricing, revenue and net income:

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Home Depot Inc. (HD)

Impacts Portfolio: -0.53%

Up 22% over 12 months, Home Depot Inc. has a market cap of $113.42 billion; its shares were traded at around $79.18 with a P/E ratio of 21.30. The dividend yield is 1.84%.

Guru Action: As of Sept. 30, 2013, Louis Moore Bacon sold out his holding, selling 285,000 shares at an average price of $77.18, for a gain of 2.6%, the holding’s lowest drop.

Over ten gaining quarters, Bacon’s highest gains of 259.7% and 263.9% were made in the fourth quarter of 2008 and the first quarter of 2009, respectively.

Track historical share pricing, revenue and net income:

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Manager of the New York City-based hedge fund, Moore Capital Management, Louis Moore Bacon uses a global macro strategy to invest in the markets. Guru Bacon is considered one of the top 100 traders of the 20th century. According to Forbes, Louis Moore Bacon’s net worth is $1.4 billion, as of Sept. 2013.

Here is the complete portfolio of Louis Moore Bacon.



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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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