At the end of the second quarter of 2015, the hedge fund Taconic Capital Advisors reported a total value of its portfolio of $3,540 million, after it added 32 new stocks to its portfolio and increased 27 of its stakes. The following are the most heavily weighted buys during the quarter.
It bought shares of Time Warner Cable Inc (TWC) with an impact of 6.21% on its portfolio. The company provides video, high-speed data and voice services in five geographic areas: New York State, the Carolinas, the Midwest, Southern California and Texas. The Company has three reportable segments: Residential Services, Business Services and Other Operations.
The company has a profitability and growth rating of 8 out of 10 with positive returns (ROE 24.69%, ROA 4.06%) that are outperforming 56% of the Global Pay TV industry. Financial strength has a rating of 8 out of 10 with an interest coverage of 3.26, but a weak cash to debt of 0.02 that is underperforming the industry median of 0.48.
The price of the stock has risen by 262% during the last 5 years, by 27% since the beginning of the year and by 29% during the last 12 months. The current price is -1.41% from its 52-week high and +48.69% from its 52-week low.
TWC delivered very strong operational results in the second quarter, and achieved record Q2 subscriber results across nearly every category, setting the company up for accelerating financial performance. Second-quarter 2015 Business Services revenue was up 16.2%, Residential Services revenue was up 2.1%, and revenue grew 3.5% year over year as a result of revenue growth at the Business Services and Residential Services segments.
The main hedge fund holding shares of the company is Dodge & Cox with 6.84% of outstanding shares, followed by John Paulson (Trades, Portfolio) with 2.87% and Jana Partners (Trades, Portfolio) with 0.83%.
It bought shares of Broadcom Corp (BRCM) with an impact of 4.76% on its portfolio. The company is provider of semiconductors for wired and wireless communications. It provides a portfolio of SoCs that seamlessly deliver voice, video, data and multimedia connectivity in the home, office and mobile environments. Its business segments include Broadband and Connectivity; and Infrastructure and Networking.
The company has a profitability and growth rating of 7 out of 10 with good returns (ROE 12.05%, ROA 8.78%) that are outperforming 73% of the Global Semiconductors industry. Financial strength has a rating of 5 out of 10 with a good cash to debt of 2.00 that is higher than the industry median of 1.85.
The price of the stock has risen by 57% during the last 5 years, by 18% since the beginning of the year and by 30% during the last 12 months. The current price is -12.48% from its 52-week high and +46.38% from its 52-week low.
Net revenue in the last quarter represented an increase of 1.8% compared to the first quarter of 2015. The most important news in the quarter was the May 28 announcement of the agreement for Avago Technologies Ltd (AVGO) to acquire Broadcom. This transaction is expected to create the world's leading diversified communications semiconductor company with combined annual revenue of approximately $15 billion.
The main guru holding shares of the company is John Paulson (Trades, Portfolio) with 0.69% of outstanding shares, followed by PRIMECAP Management (Trades, Portfolio) with 0.61% and Pioneer Investments (Trades, Portfolio) with 0.56%.
It bought shares of Family Dollar Stores Inc (FDO) with an impact of 3.91% on its portfolio. The company provides consumers with a selection of competitively priced merchandise in convenient neighbourhood stores. Its merchandise assortment includes Consumables, Home Products, Apparel and Accessories, and Seasonal and Electronics. It classifies the combination of Home Products, Apparel and Accessories, and Seasonal and Electronics as Discretionary.
The company has a profitability and growth rating of 7 out of 10 with positive returns (ROE 13.46%, ROA 5.87%) that are outperforming 70% of the Global Discount Stores industry. Financial strength has a rating of 8 out of 10 with a very high interest coverage ratio of 14.03, and a cash to debt of 0.45. Both these ratios are ranked lower than 58% of FDO’s competitors.
The price of the stock has risen by 85% during the last 5 years, by 1% since the beginning of the year and did not face any change during the last 12 months. The current price is -1.95% from its 52-week high and +32.74% from its 52-week low.
Total net sales in the second quarter of fiscal 2015 increased 3.0% but their comparable store sales and customer traffic trends are improving, and FDO is beginning to see stabilization in key categories.
Gross profit for the last quarter of fiscal 2015 increased by 33.3% of net sales and operating profit was 4.2% of sales.
The main guru holding shares of the company is Paul Singer (Trades, Portfolio) with 5.81% of outstanding shares, followed by Jim Simons (Trades, Portfolio) with 0.32% and Mario Gabelli (Trades, Portfolio) with 0.02%.
It bought shares of Mylan NV (MYL) with an impact of 3.75% on its portfolio. The company together with its subsidiaries, is a pharmaceutical company, which develops, licenses, manufactures, markets and distributes generic, branded generic and specialty pharmaceuticals. The company offers 1,300 marketed products, to customers in 140 countries and territories. It also operates a research and development network that delivers a robust product pipeline. Additionally, the Company has a specialty business that is engaged in the respiratory and allergy therapies.
The company has a profitability and growth rating of 7 out of 10 with good returns (ROE 15.95%, ROA 4.98%) that are outperforming 75% of the Global Drug Manufacturers - Specialty & Generic industry. Financial strength has a rating of 7 out of 10 with an interest coverage of 4.06, and a weak cash to debt of 0.05 that is very low if compared to the industry median of 2.66.
The price of the stock has risen by 210% during the last 5 years, has dropped by 3% since the beginning of the year and has risen by 14% during the last 12 months. The current price is -28.99% from its 52-week high and +21.54% from its 52-week low.
In its last quarter, total revenues were up 36% on a constant currency basis versus the prior year period. Adjusted gross profit and EPS were up 39% and 32% compared to the prior year period. For the rest of the year, they are raising adjusted diluted EPS guidance range to $4.15 to $4.35, an increase of 19%, or 23% on a constant currency basis.
The main shareholder holding shares of the company is John Paulson (Trades, Portfolio) with 4.46% of outstanding shares amounting to 7.06% of his total assets, followed by Vangurad Health Care Fund with 3.23% and Larry Robbins (Trades, Portfolio) with 0.37%.
It bought shares of Catamaran Corp (CTRX) with an impact of 3.15% on its portfolio. The company's PBM services include electronic point-of-sale pharmacy claims management, retail pharmacy network management, mail service pharmacy claims management, specialty pharmacy claims management, Medicare Part D services, benefit design consultation, preferred drug management programs, drug review and analysis, consulting services, data access, and reporting and information analysis.
The company has a profitability and growth rating of 8 out of 10 with positive returns (ROE 6.64%, ROA 3.74%) that are outperforming 52% of the Global Health Care Plans industry. Financial strength has a rating of 7 out of 10 with a weak cash to debt of 0.61 that is very low if compared to the industry median of 1.81.
The price of the stock has risen by 232% during the last 5 years, has risen by 18% since the beginning of the year and rose by 30% during the last 12 months. The current price is -0.05 from its 52-week high and +5.02% from its 52-week low.
Recently Catamaran shareholders approved acquisition by UnitedHealth Group (UNH). Under this agreement, UnitedHealth Group will acquire, indirectly, all of the issued and outstanding shares of Catamaran. The transaction is expected to close in the third quarter of 2015.
Also it announced the completion of its combination with OptumRx, which is expected to serve the needs of more than 65 million people and fulfill more than one billion prescriptions in 2015.
The main hedge fund holding shares of the company is Eric Mindich (Trades, Portfolio) with 2.73% of outstanding shares amounting to 8.38% of his total assets, followed by Jim Simons (Trades, Portfolio) with 0.42% and Diamond Hill Capital (Trades, Portfolio) with 0.31%.
Increased stakes
The hedge fund also increased seven of its stakes, and the most important are the following:
Directv (DTV) by 101%, Baker Hughes Inc (BHI) by 84%, Sina Corp (SINA) by 20%, Hospira Inc (HSP) by 260%, Medtronic Plc (MDT) by 11%, Fossil Group Inc (FOSL) by 13.33%, Micron Technology Inc (MU) by 119.05% and Altera Corp (ALTR) by 227.27%.
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| Taconic Capital Advisors Lp Top Buys Q2 2015 | |||
| Ticker | Value (x1000) | Impact % | Trade |
| TWC | 220,040 | 6.21% | New Buy |
| BRCM | 168,630 | 4.76% | New Buy |
| FDO | 138,312 | 3.91% | New Buy |
| MYL | 132,666 | 3.75% | New Buy |
| CTRX | 111,471 | 3.15% | New Buy |
As of the latest quarter, the hedge fund has its portfolio divided by the following sectors:
| Main Sectors | |
| Consumer Dicretionary | 46% |
| Health Care | 15% |
| Information Technology | 14% |
| Energy | 7% |
| Other | 6% |
