Hedge fund manager Richard Perry (Trades, Portfolio) co-founded Perry Capital LLC more than a quarter of a century ago. His first major investment was Florists' Transworld Delivery (FTD, Financial), which he sold for a profit of more than $300 million. His firm’s records in recent years – returns of 14.6% last year and 25.2% the year before – speak for themselves.
Perry’s largest purchase of the second quarter propelled his existing stake in Williams Companies Inc. (WMB, Financial), an oil and gas company based in Tulsa, Okla., to second-most valuable in his portfolio. Perry nearly tripled his stake in the company, buying 6,261,172 shares for an average price of $51.51 per share. The acquisition had an 11.36% impact on Perry’s portfolio.
Williams Companies has a market cap of $37.22 billion and an enterprise value of $71.67 billion. It has a P/E of 18.3, a Price/Book of 4.7 and a Price/Sales of 4.8. Steve Mandel (Trades, Portfolio), Jana Partners (Trades, Portfolio), Eric Mindich (Trades, Portfolio), Daniel Loeb (Trades, Portfolio), John Burbank (Trades, Portfolio), Steven Cohen (Trades, Portfolio), Murray Stahl (Trades, Portfolio), Louis Moore Bacon (Trades, Portfolio), Pioneer Investments (Trades, Portfolio), Paul Singer (Trades, Portfolio), Paul Tudor Jones (Trades, Portfolio), Chuck Akre (Trades, Portfolio) and Ken Fisher (Trades, Portfolio) have shares of Williams Companies in their portfolios.
Perry added to two other stakes in his portfolio – Community Health Systems Inc. (CYH, Financial) and Cheniere Energy Inc. (LNG, Financial).
Perry bought 800,000 shares of Community Health Systems, a healthcare company based in Franklin, Tenn., raising his stake by more than 50%. Perry paid an average price of $54.25 per share. The deal had a 1.59% impact on Perry’s portfolio.
Community Health Systems has a market cap of $6.58 billion and an enterprise value of $23.16 billion. It has a P/E of 18.3, a Price/Book of 1.6 and a Price/Sales of 0.3. Larry Robbins (Trades, Portfolio), Ron Baron (Trades, Portfolio), Richard Snow (Trades, Portfolio), Vanguard Health Care Fund (Trades, Portfolio), Louis Moore Bacon (Trades, Portfolio), John Hussman (Trades, Portfolio), Jeff Auxier (Trades, Portfolio), Joel Greenblatt (Trades, Portfolio), Paul Tudor Jones (Trades, Portfolio) and David Dreman (Trades, Portfolio) also have shares of Community Health Systems in their portfolios.
Perry acquired 666,568 shares of Cheniere Energy, a Houston-based energy company, for an average price of $74.98 per share. The transaction had a 1.46% impact on Perry’s portfolio.
Cheniere Energy has a market cap of $14.65 billion and an enterprise value of $30.57 billion. It has a Price/Sales of 52.0. Seth Klarman (Trades, Portfolio), Andreas Halvorsen (Trades, Portfolio), Steve Mandel (Trades, Portfolio), John Griffin (Trades, Portfolio), Carl Icahn (Trades, Portfolio), Alan Fournier (Trades, Portfolio), Larry Robbins (Trades, Portfolio), Steven Cohen (Trades, Portfolio), Julian Robertson (Trades, Portfolio) and Leon Cooperman (Trades, Portfolio) have shares of Cheniere Energy in their portfolios.
Perry bought six new stakes in the second quarter – Ball Corp. (BLL, Financial), Time Warner Inc. (TWX, Financial), Zoetis Inc. (ZTS, Financial), Perrigo Co PLC (PRGO, Financial), Office Depot Inc. (ODP, Financial) and DCP Midstream Partners LP (DPM, Financial).
Perry purchased a 3,400,000-share stake in Ball, a Colorado-based packaging company, for an average price of $72.19 per share. The deal had a 7.54% impact on Perry’s portfolio and made Ball the third-most valuable stake in that portfolio.
Ball has a market cap of $9.28 billion and an enterprise value of $12.52 billion. It has a P/E of 23.5, a Price/Book of 8.1 and a Price/Sales of 1.1. Perry is Ball’s leading shareholder among the gurus, but Andreas Halvorsen (Trades, Portfolio), Jim Simons (Trades, Portfolio), Joel Greenblatt (Trades, Portfolio) and Steven Cohen (Trades, Portfolio) also have shares of Ball in their portfolios.
Perry acquired a 1,240,000-share stake in Time Warner, a multinational mass media corporation based in New York City, for an average price of $85.32 per share. The purchase had a 3.43% impact on Perry’s portfolio.
Time Warner has a market cap of $59.29 billion and an enterprise value of $79.96 billion. It has a P/E of 17.1, a Price/Book of 2.5 and a Price/Sales of 2.2. Dodge & Cox, Manning & Napier Advisors, Inc, Jana Partners (Trades, Portfolio), Brian Rogers (Trades, Portfolio), David Einhorn (Trades, Portfolio), First Eagle Investment (Trades, Portfolio), Mario Gabelli (Trades, Portfolio), Pioneer Investments (Trades, Portfolio), Leon Cooperman (Trades, Portfolio), Steven Cohen (Trades, Portfolio), NWQ Managers (Trades, Portfolio), MS Global Franchise Fund (Trades, Portfolio), Murray Stahl (Trades, Portfolio), Westport Asset Management (Trades, Portfolio), Louis Moore Bacon (Trades, Portfolio), Scott Black (Trades, Portfolio), Jim Simons (Trades, Portfolio), Jeff Auxier (Trades, Portfolio), Paul Tudor Jones (Trades, Portfolio), Lee Ainslie (Trades, Portfolio), Joel Greenblatt (Trades, Portfolio) and Ken Fisher (Trades, Portfolio) have shares of Time Warner in their portfolios.
Perry bought 2,000,000 shares of Zoetis, a former Pfizer (PFE, Financial) subsidiary and now an independent producer of medicine and vaccinations for pets and livestock based in New Jersey, for an average price of $47.71 per share. The transaction had a 3.05% impact on Perry’s portfolio.
Zoetis has a market cap of $22.46 billion and an enterprise value of $25.59 billion. It has a P/E of 53.6, a Price/Book of 19.1 and a Price/Sales of 4.7. Bill Ackman (Trades, Portfolio), Vanguard Health Care Fund (Trades, Portfolio), Steven Cohen (Trades, Portfolio), Pioneer Investments (Trades, Portfolio), George Soros (Trades, Portfolio), Jim Simons (Trades, Portfolio), Mario Gabelli (Trades, Portfolio), First Eagle Investment (Trades, Portfolio), Ruane Cunniff (Trades, Portfolio), Louis Moore Bacon (Trades, Portfolio), John Keeley (Trades, Portfolio), Paul Tudor Jones (Trades, Portfolio) and Robert Olstein (Trades, Portfolio) have shares of Zoetis in their portfolios.
Perry purchased 336,000 shares of Perrigo, an Irish manufacturer of over-the-counter drugs, for an average price of $190.23 per share. That deal had a 1.96% impact on Perry’s portfolio.
Perrigo has a market cap of $27.34 billion and an enterprise value of $31.85 billion. It has a P/E of 197.7, a Price/Book of 2.6 and a Price/Sales of 5.7. Vanguard Health Care Fund (Trades, Portfolio), Ruane Cunniff (Trades, Portfolio), Eric Mindich (Trades, Portfolio), David Rolfe (Trades, Portfolio), Kyle Bass (Trades, Portfolio), Jim Simons (Trades, Portfolio), Daniel Loeb (Trades, Portfolio), Meridian Funds (Trades, Portfolio), Steve Mandel (Trades, Portfolio), Ken Fisher (Trades, Portfolio), George Soros (Trades, Portfolio), Louis Moore Bacon (Trades, Portfolio), Paul Tudor Jones (Trades, Portfolio), John Keeley (Trades, Portfolio), Steven Cohen (Trades, Portfolio), Robert Bruce (Trades, Portfolio), Joel Greenblatt (Trades, Portfolio), Jeremy Grantham (Trades, Portfolio) and Mario Gabelli (Trades, Portfolio) have shares of Perrigo in their portfolios.
Perry bought 3,958,400 shares of Office Depot, a Boca Raton, Fla.-based office supply retailing company, for an average price of $9.2 per share. The transaction had a 1.08% impact on Perry’s portfolio.
Office Depot has a market cap of $4.15 billion and an enterprise value of $4.82 billion. It has a Price/Book of 2.6 and a Price/Sales of 0.3. Eric Mindich (Trades, Portfolio), Jeremy Grantham (Trades, Portfolio), Jim Simons (Trades, Portfolio), HOTCHKIS & WILEY, Joel Greenblatt (Trades, Portfolio), Pioneer Investments (Trades, Portfolio), Arnold Schneider (Trades, Portfolio), Paul Singer (Trades, Portfolio), George Soros (Trades, Portfolio), Paul Tudor Jones (Trades, Portfolio), Richard Snow (Trades, Portfolio) and Mario Gabelli (Trades, Portfolio) have shares of Office Depot in their portfolios.
Divestitures and reductions
Perry sold out five stakes in the second quarter – Nokia Oyj (NOK, Financial), Micron Technology Inc. (MU), International Paper Co. (IP), Tenet Healthcare Corp. (THC) and KapStone Paper And Packaging Corp. (KS).
The sale of Perry’s 22,374,000-share stake in Nokia, a Finnish communications and information technology company, was his largest of the quarter. Perry received an average price of $7.29 per share. The divestiture had a -5.58% impact on his portfolio.
Nokia has a market cap of $22.58 billion and an enterprise value of $18.23 billion. It has a P/E of 12.6, a Price/Book of 2.3 and a Price/Sales of 1.6. Jim Simons (Trades, Portfolio), John Rogers (Trades, Portfolio), Francis Chou (Trades, Portfolio), Daniel Loeb (Trades, Portfolio), Jeff Auxier (Trades, Portfolio) and Ken Fisher (Trades, Portfolio) have shares of Nokia in their portfolios.
Perry made comparatively modest reductions in two stakes – American International Group Inc. (AIG) and Johnson & Johnson (JNJ).
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