5 Stocks That Backers of the Activist Lobbying Arm CIRCA Like

#3 TransDigm Group Incorporated (NYSE:TDG)

 – Investors with long positions (as of March 31): 45

 – Aggregate value of investors’ holdings (as of March 31): $3.32 billion

Amid a 3.5% drop in TransDigm Group Incorporated (NYSE:TDG)’s stock during the first quarter, a net total of ten hedge funds in our database left the stock, while the aggregate value of their holdings in it fell by $774 million. However, Third Point initiated a stake in TransDigm Group Incorporated (NYSE:TDG) during that period, purchasing 1.00 million shares of the company. The aircraft component manufacturer became a part of the S&P 500 on June, replacing Baxalta, which was recently acquired by Shire PLC (ADR) (NASDAQ:SHPG). TransDigm Group’s stock has seen a stellar rally in the past few weeks, following the company reporting its first quarter results. While the Street had estimated EPS of $2.58 on revenue of $777.11 million for the quarter, TransDigm Group managed to soundly beat those estimates, declaring EPS of $2.86 on revenue of $796.80 million. Shares of the company are currently trading up by 13.58% year-to-date.

#2 Gaming and Leisure Properties Inc (NASDAQ:GLPI)

 – Investors with long positions (as of March 31): 59

 – Aggregate value of investors’ holdings (as of March 31): $1.32 billion

Gaming and Leisure Properties Inc (NASDAQ:GLPI) saw a remarkable increase in its popularity among hedge funds during the first quarter, with net ownership increasing by 30 and the aggregate value of their holdings in it swelling by over 47%. Michael Novogratz’s Fortress Investment Group, which initiated an activist stake in the company during the final quarter of 2013, continued to remain the largest shareholder of Gaming and Leisure Properties Inc (NASDAQ:GLPI) among the funds covered by Insider Monkey as of March 31, owning 10.5 million shares of the company. Shares of the Pennsylvania-based real estate investment trust have appreciated by 21.61% so far in 2016, but despite that rally, still sport an attractive annual dividend yield of 6.63%. On June 10, analysts at Wells Fargo reiterated their ‘Buy’ rating on the stock.

#1 American International Group Inc (NYSE:AIG)

 – Investors with long positions (as of March 31): 94

 – Aggregate value of investors’ holdings (as of March 31): $8.4 billion

The consistent underperformance of American International Group Inc (NYSE:AIG) in comparison to other financial companies led several activist investors to initiate a position or increase their stake in the company last year. The most prominent among them was Mr. Icahn, who boosted his holding in the insurer by 3,004% in the fourth quarter of 2015 and upped it by a further 6% in the first quarter, to 44.24 million shares. Earlier this year, AIG reached a settlement with a group of activist investors by agreeing to nominate John Paulson of Paulson & Co. and Samuel J. Merksamer, Managing Director of Icahn Capital LP, to its board at its 2016 shareholders meeting. A regulatory filing by AIG at the end of March revealed that the salary of the company’s CEO was reduced by 29% as it missed its profit target and also stopped using credit default swaps as a metric to determine its CEO’s pay, which most analysts think was done at the behest of activist investors.

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