5 Stocks Which M&A Experts Pentwater Capital Management Are Heavily Betting On

#3 Precision Castparts Corp. (NYSE:PCP)

– Shares Owned by Pentwater Capital Management (as of September 30): 3.33 Million

– Value of Holding (as of September 30): $763.78 Million

Precision Castparts Corp. (NYSE:PCP) was a new addition to Pentwater Capital Management’s portfolio during the third quarter. On August 10, legendary investor Warren Buffett‘s Berkshire Hathaway announced that it would be buying the aircraft parts manufacturer for $37.2 billion, the largest amount of money Berkshire Hathaway has ever paid to acquire a company. Following that announcement, shares of Precision Castparts Corp. jumped by more than 20%, recovering most of the losses they suffered during the first-half of the year. The deal is expected to be completed by the first quarter of 2016. Apart from Pentwater, Billionaire John Paulson’s Paulson & Co also initiated a stake in Precision Castparts Corp. (NYSE:PCP) during the third quarter; it bought 1.0 million shares of the company during that period.

#2 Time Warner Cable Inc (NYSE:TWC)

– Shares Owned by Pentwater Capital Management (as of September 30): 5.33 Million

– Value of Holding (as of September 30): $956.11 Million

After increasing its stake in Time Warner Cable Inc (NYSE:TWC) by 89% during the second quarter, Pentwater Capital Management reduced its stake by 3% during the third quarter. However, Time Warner Cable still managed to jump a spot quarter-over-quarter to become the fund’s second-largest holding by the end of September. Shares of Time Warner Cable have been range-bound since a brief rally in May, when smaller rival Charter Communications, Inc. (NASDAQ:CHTR) announced that it would be buying the company in a deal valued at $78.7 billion. Although both companies expected the deal to be approved by the end of this year initially, due to regulatory hurdles they now expect it to be completed sometime in 2016. Thomas Steyer‘s Farallon Capital increased its stake in Time Warner Cable Inc (NYSE:TWC) by 53% to 3.38 million shares during the July-to-September period.

#1 Broadcom Corporation (NASDAQ:BRCM)

– Shares Owned by Pentwater Capital Management (as of September 30): 22.1 Million

– Value of Holding (as of September 30): $1.13 Billion

Finally, with the acquisition of DIRECTV having been completed in July, Broadcom Corporation (NASDAQ:BRCM) emerged as Pentwater Capital Management’s largest equity bet at the end of September. The fund initiated a stake in Broadcom Corporation (NASDAQ:BRCM) during the second quarter and in the third quarter, hiked its position by another 7%. Shares of Broadcom Corporation have mostly traded in the $50-to-$55 range ever since Avago Technologies Ltd (NASDAQ:AVGO) announced on May 27 that it would be acquiring Broadcom for $37 billion. However, they have recently broken that range on the upside and now trade up by over 32% year-to-date. On December 3, Canaccord Genuity reiterated its ‘Hold’ rating on the stock, while upping its price target on it to $59 from $54.50. Andreas Halvorsen‘s Viking Global initiated a stake in Broadcom Corporation during the third quarter and became the company’s largest shareholder among the funds covered by us as of the end of September.

Disclosure: None