As the 13F season continues, let’s take a look at Giovine Capital’s recently disclosed long equity positions for the second quarter of 2014. This hedge fund, founded and managed by Thomas A. Giovine, who previously worked at Morgan Stanley and follows an activist strategy, acknowledged holding more than 45 long equity positions, with a market value of roughly $182 million. Over the quarter, the fund started five new stock positions, increased its stakes in another four, and sold out of eight companies. Let’s take a look at some of its top stakes for the second quarter of the year.
Giovine’s most valuable equity position is a newcomer in its portfolio: Allergan Inc. (NYSE:AGN). Between April and June, the fund acquired 80,000 shares of the $45.6 billion market cap multi-specialty health care company. This position is worth more than $13.5 million, and accounts for 7.4% of the fund’s equity portfolio’s total value.
Pershing Square, run by Bill Ackman, is the largest hedge fund shareholder of record. Around mid-July, the fund confirmed holding 28.88 million shares of Allergan Inc. (NYSE:AGN), which account for 9.7% of the company’s outstanding common stock. Allergan Inc. (NYSE:AGN) has been one of the main drivers of Pershing Square’s above-average returns in the first half of the year, as it gained more than 52% between January 2 and June 30.
The second company on this list is Anadarko Petroleum Corporation (NYSE:APC), a $54.9 billion market cap oil and gas exploration and production company that saw Giovine boost its exposure by 7% over the second quarter. The fund now owns 69,625 shares of Anadarko Petroleum Corporation (NYSE:APC), worth roughly $7.6 million.
Although the stock is already up more than 36% year-to-date, analysts expect Anadarko Petroleum Corporation (NYSE:APC) to continue to rise. The median target price of $126.00 per share implies a 16% upside from the current price point of $108.51 per share (August 11 2014).
Another big hedge fund that disclosed a big stake in Anadarko Petroleum Corporation (NYSE:APC) for the second quarter of 2014 is Jean-Marie Eveillard’s First Eagle Investment Management. The fund disclosed ownership of 2.78 million shares, following the sale of 351,514 shares, probably seeking to capitalize from the steep price increase that took place in early-April.
Last is DISH Network Corp (NASDAQ:DISH), a $28.87 billion market cap company that provides a direct broadcast satellite subscription television service in the United States. I should highlight that, despite an on-average valuation, DISH Network Corp (NASDAQ:DISH) boasts industry leading returns on equity of 112%, versus an industry average of 21%-22%.
Over the second quarter, Giovine upped its participation in the company by 36%, and now owns 111,136 shares of DISH Network Corp (NASDAQ:DISH), worth approximately $7.2 million.
On the opposite trend, Mario Gabelli’s Gamco Investors trimmed its exposure by 3% over the second quarter. Still, the fund owns 3.27 million shares of DISH Network Corp (NASDAQ:DISH), worth more than $213 million.
Disclosure: Javier Hasse holds no position in any stocks or funds mentioned
