Activism-Focused 13D Management Is Betting Big on Lifelock (LOCK) And Howard Hughes (HHC); Plus Three New Additions

Pandora Picking Up Steam

As Pandora Media Inc (NYSE:P) recovers after testing its all-time low, 13D Management is looking to get a piece of the action. During the second quarter, the fund acquired 603,946 shares reportedly worth $7.52 million at the end of June. At the end of the quarter, roughly 45% of Pandora Media Inc (NYSE:P)’s common stock was held by 46 of the funds in our database, up from 35 funds at the end of the first quarter. Gilchrist Berg, the manager of Water Street Capital, made a big bullish play on Pandora, having boosted his fund’s stake by 7941% to 8.04 million shares worth a little over $100 million at the end of June. Pandora Media Inc (NYSE:P) is currently preparing to offer an on-demand music streaming service similar to Spotify and Apple Inc. (NASDAQ:AAPL) Music. The company will offer a package priced at the standard $9.99 per month as well as a lower-priced one. Pandora’s management has also reaffirmed its five-year goal to generate $4 billion in revenue by 2020 and there have even been rumors circulating the Street about a potential takeover.

Bullish On Lifelock

Kenneth Squire’s largest new bet is on Lifelock Inc (NYSE:LOCK), the provider of security solutions. Valued at $8.75 million, 13D Management’s stake amounted to 553,792 shares at the end of the second quarter. Lifelock Inc (NYSE:LOCK) gained a boost of popularity over the second quarter, as the number of long hedge fund positions (among the funds we track) rose to 22 at the end of June from 16 recorded three months earlier. Paul Singer and his team share Kenneth Squire’s optimism about Lifelock as well, with Elliott Management having established a fresh position that amounted to 7.15 million shares valued at $113 million. Although it registered a significant correction in January, Lifelock Inc (NYSE:LOCK) managed regain all the ground lost and is currently up by 15% through Monday’s closing price of $16.19 per share. The stock took a tumble in the beginning of August, as the company registered a significant rise in costs. Lifelock reported a 9% increase in membership in the consumer side of the business to 4.4 million users, while client acquisition costs rose 23% year-over-year. The company reported a 13% increase in revenue to $164 million and adjusted earnings of $0.07 per share.

New Favorite

Howard Hughes Corp (NYSE:HHC) is 13D Management’s new top dog, after Kenneth Squire boosted his investment by 4% to 115,276 shares worth approximately $13.2 million. Hedge fund sentiment towards Howard Hughes Corp (NYSE:HHC) cooled down a bit during the quarter, with 24 of the funds tracked by Insider Monkey having reported a stake at the end of June, down from 26 three months earlier. Billionaire Bill Ackman is also keeping an eye on this stock, with his fund, Pershing Square, holding 3.56 million shares worth roughly $408 million at the end of the quarter. Howard Hughes Corp (NYSE:HHC) has a market cap of $4.5 billion and is currently trading at a trailing Price-to-Earnings (P/E) ratio of 18, slightly higher than the industry average of 12 as reported by Yahoo! Finance. For the second quarter, the company posted a profit of $7 million or $1.58 per share when adjusted for non-recurring costs, beating analysts’ projections of $0.75 per share. Revenue rose 30% year-over-year to $272 million. Analysts recommend this stock mainly as a ‘Buy’, with an average price target of $177 per share, implying an upside potential of 56% given Monday’s closing price of $113.43 per share.

Disclosure: none