Stocks Bought in Q3
Dollar Tree, Inc. (NASDAQ:DLTR)
– Shares Bought During Q3: 911,304
– Value of Holding (as of September 30): $74.32 million
– Q4 Return (through December 14): +5.29%
– Trailing P/E Ratio: 11.66
Corvex took a new stake in Dollar Tree, Inc. (NASDAQ:DLTR) during Q3, which could be in anticipation of a near-term economic downturn, which the discount retailer should be able to perform well during. Dollar Tree’s results have been dragged down for years by its $9 billion purchase of struggling Dollar General in 2015, which it has been unable to turn around despite massive investment.
The Stars Group Inc. (NASDAQ:TSG)
– Shares Bought During Q3: 560,320
– Value of Holding (as of September 30): $13.95 million
– Q4 Return (through December 14): -34.50%
– Forward P/E Ratio: 6.63
Corvex also opened a new position in The Stars Group Inc. (NASDAQ:TSG) during Q3, a quarter after hedge funds were buying the stock in droves during Q2, when the number of TSG shareholders among the funds tracked by our database more than doubled to 60. Hedge funds are clearly bullish on the Canadian gaming company’s prospects in the wake of its $4.7 billion purchase of Sky Betting and Gaming in Q2 in conjunction with the Supreme Court’s decision to legalize sports betting.
Mohawk Industries, Inc. (NYSE:MHK)
– Shares Bought During Q3: 706,374 million
– Value of Holding (as of September 30): $147 million
– Q4 Return (through December 14): -33.29%
– Trailing P/E Ratio: 2.34
Mohawk Industries, Inc. (NYSE:MHK) is now Keith Meister’s top stock pick after he jacked Corvex’s position by 543% during Q3. Meister may have felt the price floor was near for the flooring company’s stock, which has been one of the worst performers in the S&P 500 this year, losing a dreadful 58%. However, that has yet to be the case, as the market has continued to mop the floor with Mohawk’s shares in Q4.
Stocks Sold in Q3
salesforce.com, inc. (NYSE:CRM)
– Shares Sold During Q3: 260,500 million
– Value of Holding (as of September 30): $0 million
– Q4 Return (through December 14): -13.83%
– Trailing P/E Ratio: 128.48
Meister unloaded salesforce.com, inc. (NYSE:CRM) after two very profitable years owning the stock, which has gained 65% since the end of 2016. Salesforce has become a hedge fund darling during that time, with a greater than 30% rise in the number of funds owning its shares, which has pushed it onto the list of the 30 Most Popular Stocks Among Hedge Funds.
JetBlue Airways Corporation (NASDAQ:JBLU)
– Shares Sold During Q3: 1.25 million
– Value of Holding (as of September 30): $60.07 million
– Q4 Return (through December 14): -13.07%
– Trailing P/E Ratio: 7.92
Corvex unloaded 29% of its JetBlue Airways Corporation (NASDAQ:JBLU) shares during Q3 after buying more shares during each of the past three quarters. While VR Stocks Could Eventually Disrupt the Travel Industry and broader industry concerns have hammered airline stocks recently, JetBlue is confident that it can grow EPS to between $2.50 and $3.00 per share by 2020.
Disclosure: None
