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Corvex Management LP Buys 2, Sells 3 in 1st Quarter

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May 18, 2022
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Corvex Management LP recently filed their 13F report for the first quarter of 2022, which ended on 2022-03-31.

The 13F report details which stocks were in a guru’s equity portfolio at the end of the quarter, though investors should note that these filings are limited in scope, containing only a snapshot of long positions in U.S.-listed stocks and American depository receipts as of the quarter’s end. They are not required to include international holdings, short positions or other types of investments. Still, even this limited filing can provide valuable information.

Corvex Management is a hedge fund sponsor based out of New York City. The company was founded in 2010 by Keith Arlyn Meister, who currently acts as the CIO and Managing Partner of the company. Corvex Management conducts its research in house and invests in various public equity, fixed income, and alternative investment markets on a global scale. The company utilizes an event driven and opportunistic methodology to make its investment decisions, investing in value stocks, special situations, and distressed securities. Corvex Management invests most heavily in the energy and finance sectors, which each make up over a quarter of its total asset allocations, and the firm also invests in the consumer discretionary, health care, industrials, consumer staples, and materials sectors, among others to a lesser degree, in order of decreasing amount allocated. The company is owned by its employees and currently has 23 employees employed with 13 of them being investment professionals. Corvex Management is owned in a controlling majority by founder Keith Arlyn Meister with the remaining ownership split amongst Nicholas Francis Graziano, a senior managing director, Rupal Dhruv Doshi, the COO, Malcom Andrew Levine, a senior managing director, Meister Capital Management LLC, and various other key executives. Corvex Management currently holds over $11 billion in total assets under management spread across 3 accounts, all of which are discretionary accounts, with all of its clients being pooled investment vehicles. Both of the company’s total number of accounts held and total assets under management have been increasing in recent years, with its total assets under management experience significant growth from just over $1 billion to well over 10 times that amount today. Graziano, who has worked with the founder Keith Meister before at Icahn Enterprises, left Corvex Management in 2015 to launch his own fund within the next year.

As of the latest 13F report, the guru’s equity portfolio contained 34 stocks valued at a total of $1,582,000,000. The top holdings were MGM(17.69%), FIVN(10.58%), and CEG(10.36%).

According to GuruFocus data, these were Corvex Management LP’s top five trades of the quarter.

MGM Resorts International


Corvex Management LP reduced their investment in NYSE:MGM by 9,000,000 shares. The trade had a 15.92% impact on the equity portfolio. During the quarter, the stock traded for an average price of $43.04.

On 05/18/2022, MGM Resorts International traded for a price of $35.69 per share and a market cap of $15,205,806,000. The stock has returned -10.30% over the past year.

GuruFocus gives the company a financial strength rating of 3 out of 10 and a profitability rating of 6 out of 10.

In terms of valuation, MGM Resorts International has a price-earnings ratio of 11.58, a price-book ratio of 3.02, a EV-to-Ebitda ratio of 9.56 and a price-sales ratio of 1.54.

The price-to-GF Value ratio is 1.02, earning the stock a GF Value rank of 6.

Five9 Inc


During the quarter, Corvex Management LP bought 1,216,844 shares of NAS:FIVN for a total holding of 1,516,844. The trade had a 8.49% impact on the equity portfolio. During the quarter, the stock traded for an average price of $116.57.

On 05/18/2022, Five9 Inc traded for a price of $94.64 per share and a market cap of $6,582,914,000. The stock has returned -42.71% over the past year.

GuruFocus gives the company a financial strength rating of 5 out of 10 and a profitability rating of 4 out of 10.

In terms of valuation, Five9 Inc has a price-book ratio of 31.84, a EV-to-Ebitda ratio of -275.90 and a price-sales ratio of 10.21.

The price-to-GF Value ratio is 0.54, earning the stock a GF Value rank of 4.

Constellation Energy Corp


During the quarter, Corvex Management LP bought 2,197,596 shares of NAS:CEG for a total holding of 2,914,471. The trade had a 7.81% impact on the equity portfolio. During the quarter, the stock traded for an average price of $48.72.

On 05/18/2022, Constellation Energy Corp traded for a price of $59.32 per share and a market cap of $19,379,782,000. The stock has returned 0.00% over the past year.

GuruFocus gives the company a financial strength rating of 4 out of 10 and a profitability rating of 3 out of 10.

In terms of valuation, Constellation Energy Corp has a price-earnings ratio of 127.21, a price-book ratio of 1.67, a EV-to-Ebitda ratio of 14.85 and a price-sales ratio of 1.67.

Anaplan Inc


The guru sold out of their 3,020,097-share investment in NYSE:PLAN. Previously, the stock had a 5.46% weight in the equity portfolio. Shares traded for an average price of $48.62 during the quarter.

On 05/18/2022, Anaplan Inc traded for a price of $65 per share and a market cap of $9,779,273,000. The stock has returned 20.29% over the past year.

GuruFocus gives the company a financial strength rating of 7 out of 10 and a profitability rating of 3 out of 10.

In terms of valuation, Anaplan Inc has a price-book ratio of 36.73, a EV-to-Ebitda ratio of -55.05 and a price-sales ratio of 15.98.

The price-to-GF Value ratio is 0.88, earning the stock a GF Value rank of 9.

Exelon Corp


The guru sold out of their 2,150,627-share investment in NAS:EXC. Previously, the stock had a 3.59% weight in the equity portfolio. Shares traded for an average price of $42.31 during the quarter.

On 05/18/2022, Exelon Corp traded for a price of $47.54 per share and a market cap of $46,599,164,000. The stock has returned 50.25% over the past year.

GuruFocus gives the company a financial strength rating of 4 out of 10 and a profitability rating of 7 out of 10.

In terms of valuation, Exelon Corp has a price-earnings ratio of 17.95, a price-book ratio of 1.98, a price-earnings-to-growth (PEG) ratio of 7.83, a EV-to-Ebitda ratio of 7.48 and a price-sales ratio of 1.47.

The price-to-GF Value ratio is 1.71, earning the stock a GF Value rank of 1.


Please note, the numbers and facts quoted are as of the writing of this article and may not factor in the latest trading data or company announcements.

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