Elliott Management founder Paul Singer (Trades, Portfolio) established 12 new positions in the third quarter.
A well-known activist investor, Singer invests in underperforming companies in order to implement change and help turn them toward profitability. His current portfolio is composed of 78 stocks.
The guru’s six largest new purchases for the quarter were Ocean Rig UDW Inc. (ORIG, Financial), Peabody Energy Corp. (BTUPR, Financial), Taubman Centers Inc. (TCO, Financial), Investors Bancorp Inc. (ISBC, Financial), GTY Technology Holdings Inc. (GTYH, Financial) and Vantage Energy Acquisition Corp. (VEAC, Financial).
Ocean Rig
Singer purchased 18.5 million shares of Ocean Rig for an average price of $1,480.13 per share, giving it 2.61% portfolio space.
The Greek offshore drilling contractor has a market cap of $2.2 billion; its shares were trading around $24.04 on Tuesday with a price-book (P/B) ratio of 1.04.
The Peter Lynch chart below shows the stock is trading below its fair value.
GuruFocus ranked Ocean Rig’s financial strength 6 of 10 and its profitability and growth 7 of 10. The company does not currently pay a dividend.
Of the gurus invested in Ocean Rig, Singer has the largest position with 20.2% of outstanding shares. Howard Marks (Trades, Portfolio) and Louis Moore Bacon (Trades, Portfolio) are also shareholders.
Peabody Energy
The guru bought 7.2 million shares of Peabody’s 8.5% convertible preferred series A stock for an average price of $59.56 per share, expanding the portfolio 2.43%.
The St. Louis-based coal miner has a market cap of $3.44 billion; its common stock (BTU, Financial) was trading around $32.96 on Tuesday with a forward price-earnings (P/E) ratio of 16.61.
According to the Peter Lynch chart below, the stock is trading below its fair value.
GuruFocus ranked Peabody’s financial strength 5 of 10 and its profitability and growth 5 of 10. The company does not pay a dividend.
David Tepper (Trades, Portfolio) also owns the company’s preferred shares.
Taubman Centers
Singer invested in 2.3 million shares of Taubman Centers for an average price of $55.09 per share, impacting the portfolio by 0.69%.
The Michigan-based real estate investment trust (REIT) has a market cap of $3.34 billion; its shares were trading around $54.98 on Tuesday with a P/E ratio of 52.35, a P/B ratio of 230.99 and a price-sales (P/S) ratio of 5.35.
Based on the Peter Lynch chart below, the stock appears to be trading above its fair value.
GuruFocus ranked the REIT’s financial strength 3 of 10 and its profitability and growth 3 of 10. The company’s trailing dividend yield is 4.46% and its forward dividend yield is 4.42%. The dividend payout ratio is 233%.
With this transaction, Singer became the company’s largest guru shareholder with 3.83% of outstanding shares. Pioneer Investments (Trades, Portfolio) and Murray Stahl (Trades, Portfolio) also own the stock.
Investors Bancorp
Singer purchased 5.7 million shares of Investors Bancorp for an average price of $13.2 per share, giving it 0.47% portfolio space.
The New Jersey-based bank has a market cap of $4.36 billion; its shares were trading around $14.25 on Tuesday with a P/E ratio of 22.25, a P/B ratio of 1.39 and a P/S ratio of 5.89.
The Peter Lynch chart below shows the stock is trading above its fair value.
GuruFocus ranked the bank’s financial strength 3 of 10 and its profitability and growth 6 of 10. The company’s trailing dividend yield is 2.33% and its forward dividend yield is 2.54%. The payout ratio is 51%.
Singer is the company’s largest guru shareholder with 1.89% of outstanding shares. Jim Simons (Trades, Portfolio), Hotchkis & Wiley, Michael Price (Trades, Portfolio), Paul Tudor Jones (Trades, Portfolio), Chuck Royce (Trades, Portfolio) and Keeley Asset Management Corp (Trades, Portfolio). also own the stock.
GTY Technology
Having previously exited a position in GTY Technology in the first quarter, Singer established a 4.4 million-share stake for an average price of $10.04 per share. The trade had an impact of 0.26% on the portfolio.
The Las Vegas-based blank check company has a market cap of $686.55 million; its shares were trading around $9.95 on Tuesday with a P/E ratio of 248.75 and a P/B ratio of 138.20.
According to the Peter Lynch chart below, the stock is trading above its fair value.
GuruFocus ranked GTY Technology’s financial strength 6 of 10 and its profitability and growth 3 of 10. The company does not pay a dividend.
With 6.38% of outstanding shares, Singer is the company’s largest guru shareholder. Bacon holds 4.1% of outstanding shares.
Vantage Energy Acquisition
The guru invested in 4 million shares of Vantage for an average price of $9.79 per share, expanding the portfolio 0.23%.
The Irving, Texas-based blank check company, which went public in April, has a market cap of $154.88 million; its shares were trading around $9.67 on Tuesday.
The trend in the stock’s price since its initial public offering is illustrated in the graph below.
GuruFocus ranked Vantage’s financial strength 5 of 10 and its profitability and growth 3 of 10. The company does not pay a dividend.
Singer has the largest holding with 24.97% of the company’s outstanding shares. Bacon has a 6.24% stake.
Other stocks Singer invested in during the quarter include Matlin & Partners Acquisition Corp. (MPAC, Financial), EQT Corp. (EQT, Financial), WR Grace & Co. (GRA, Financial), Gentex Corp. (GNTX), Tenneco Inc. (TEN) and Gentherm Inc. (THRM).
Disclosure: I do not own any stocks mentioned.
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