The Stocks That Lost Their Positions in First Eagle Investment Management

Company exited its positions in PPG Industries, Avis Budget Group, Hertz Global Holdings

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Nov 24, 2015
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First Eagle Investment (Trades, Portfolio) Management, LLC is an independent company with approximately $90 billion in assets under management. Following are the stocks that the fund sold out during the third quarter.

The fund has exited its position in PPG Industries Inc. (PPG). It had held 2,286,645 shares. The position got established in Q4 2014 at an average price of $103.71 per share and in the second quarter the position saw an increase of 121.92%. In this quarter the stock sold out at a price below its purchase price at $101.76.

PPG Industries has a market cap of $28.4 billion and is engaged in manufacturing and distributing coatings, specialty materials and glass products. It has three reportable business segments: Performance Coatings, Industrial Coatings and Glass.

In the past five years, its revenue grew at a rate of 7.40% on average annually, EBITDA by 9.70% and book value by 12.60%.

Another fund that sold out its stake of PPG Industries in this quarter is Pioneer Investments (Trades, Portfolio). Ken Fisher (Trades, Portfolio) reduced his stake by 0.14%.

First Eagle Investment (Trades, Portfolio) has exited its position in Avis Budget Group Inc. (CAR). It had held 1,597,262 shares. The stock got a new position in the portfolio in Q4 2012 at an average price of $17.76 and in the last three quarters the fund reduced its stake. In this quarter the stake sold out at double its purchase price at $43.37.

Avis Budget Group has a market cap of $4.07 billion and provides vehicle rental and car sharing services in North America, Europe, Australia, New Zealand and certain other regions it serves.

In the past five years, its revenue grew at a rate of 11.70% on average annually, EBITDA by 1.70% and book value by 24.70%.

Jim Simons (Trades, Portfolio), Andreas Halvorsen (Trades, Portfolio) and Louis Moore Bacon (Trades, Portfolio) are investors who sold out Avis.

The fund has exited its position in Hertz Global Holdings Inc. (HTZ). It held 2,874,465 shares. Hertz had a long-term position in the portfolio since 2010 and again it got a new position in Q4 2013 at an average price of $23.81 per share. In the last six quarters the investor raised its stake and this quarter sold out at a price below its purchase price at $17.45.

Hertz has a market cap of $7.13 billion and is engaged in car and truck rental and leasing and equipment rental business.

In the past five years, its revenue grew at a rate of 5.80% on average annually, EBITDA by 6.10% and book value by 2.20%.

Other investors who sold out Hertz are Whitney Tilson (Trades, Portfolio), Paul Tudor Jones (Trades, Portfolio), John Burbank (Trades, Portfolio), Louis Moore Bacon (Trades, Portfolio) and David Einhorn (Trades, Portfolio).

First Eagle Investment (Trades, Portfolio) has exited its position in Motorola Solutions Inc. (MSI). It had held 867,915 shares. The positon was established in Q3 2012 at an average price of $48.05; in the last two quarters the fund reduced its stake. This quarter the stake was sold at a price higher than its purchase price at $63.05.

Motorola has a market cap of $12.75 billion and is a provider of mission-critical communication infrastructure, devices, software and services.

In the past five years, its revenue dropped at a rate of 10.60% on average annually, and book value dropped by 14.10% while EBITDA did not face any change.

Other investors who sold Motorola Solutions are PRIMECAP Management (Trades, Portfolio), Jim Simons (Trades, Portfolio) and Eric Mindich (Trades, Portfolio).

First Eagle sold out of Micron Technology Inc. (MU). It had held 2,680,505 shares; it bought shares of Micron in Q4 2014 at an average price of $33.11 per share. In the last two quarters the fund increased its stake by 35.80% and 29.95%. This quarter the stake sold out at a price well below its purchase price at $17.2.

Micron Technology has a market cap of $16.63 billion, and it manufactures and markets a range of DRAM, NAND Flash and NOR Flash memory, as well as other memory technologies, packaging solutions and semiconductor systems for use in computing, consumer, networking, automotive, industrial, embedded and mobile products

In the past five years, its revenue grew at a rate of 12.30% on average annually, EBITDA by 9.60% and book value by 7.00%.

Paul Tudor Jones (Trades, Portfolio), RS Investment Management (Trades, Portfolio) and Louis Moore Bacon (Trades, Portfolio) are investors who sold Micron Technology.

First Eagle Investment (Trades, Portfolio) has exited its position in SPDR S&P 500 ETFÂ (SPY). It had held 189,670 shares. The stock has had a long-term position in the portfolio since 2010 and again got a new position in Q1 2014 at a price of $183.53 per share. The second quarter of 2014 it saw a huge increase of 494.80%. This quarter the fund sold out its stake at a higher price than its purchase price at $202.78.

The SPDR S&P 500 ETF Trust seeks to provide investment results that, before expenses, correspond generally to the price and yield performance of the Standard & Poor's 500® Index.

Other investors who sold out stakes of SPDR S&P are Murray Stahl (Trades, Portfolio), John Burbank (Trades, Portfolio) and Louis Moore Bacon (Trades, Portfolio).

First Eagle sold out its shares in United Rentals Inc. (URI). The fund had held 37,735 shares. It bought shares of URI in Q2 2015 at an average price of $95.76 per share and this quarter sold out its shares at below its purchase price at $69.41.

United Rentals has a market cap of $7.07 billion and is an equipment rental company and its network consists of locations in 49 states and 10 Canadian provinces. It is also present in more than 300 metropolitan markets in North America.

In the past five years, its revenue grew at a rate of 7.40% on average annually and EBITDA by 21.70% while book value did not face any change.

Pioneer Investments (Trades, Portfolio), George Soros (Trades, Portfolio), Chuck Royce (Trades, Portfolio), Scott Black (Trades, Portfolio), Jana Partners (Trades, Portfolio) and Joel Greenblatt (Trades, Portfolio) sold out their stakes in United Rentals.

The company has exited its position in Talen Energy Corp. (TLN). It had held 1,738,611 shares of Talen Energy. Last quarter the position saw a huge increase of 4,737.81%, and this quarter the fund sold out its shares.

Talen Energy has a market cap of $1.03 billion and is engaged in manufacturing and distributing coatings, specialty materials and glass products. It has three reportable business segments: Performance Coatings, Industrial Coatings and Glass.

In the past five years, its revenue, EBITDA and book value did not face any change.

Joel Greenblatt (Trades, Portfolio) and John Hussman (Trades, Portfolio) are other two investors that sold out shares of Talen Energy.