#4. Dow Chemical Co (NYSE:DOW)
– Shares Owned by Third Point LLC (as of December 31): 25.25 Million
– Value of Third Point’s Holding (as of December 31): $1.30 Billion
– Q1 Return: -0.3%
Billionaire Dan Loeb’s hedge fund upped its position in Dow Chemical Co (NYSE:DOW) by 1.75 million shares during the October-to-December quarter, ending 2015 with 25.25 million shares worth $1.30 billion. The 25.25 million-share stake accounted for 13.18% of the fund’s equity portfolio at the end of December. Dow Chemical has also lost some of its appeal within the hedge fund industry, as the number of funds invested in the company dropped to 49 from 56 during the fourth quarter of 2015. Just recently, the U.S. largest chemical maker agreed to pay $400 million to settle claims over alleged arrangement with competitors to fix polyurethane prices. Although the company continues to claim that it has never agreed with anyone to fix prices for polyurethane-foam materials, Dow’s management believes that the aforementioned settlement represents the most appropriate decision based on possible outcomes. In December 2015, Dow Chemical’s and E. I. Du Pont De Nemours and Co (NYSE:DD)’s Boards of Directors approved the all-stock merger between the two giants, which is anticipated to close in the second half of 2016. The two parties intend to separate the soon-to-be created DowDuPont into three independent companies: a pure-play agriculture company; a pure-play material science company; and a technology and innovation-driven specialty products company. Larry Robbins’ Glenview Capital disclosed ownership of 9.28 million shares in Dow Chemical Co (NYSE:DOW) in its 13F filing for the final quarter of 2015.
Follow Dow Chemical (Old Filings) (INDEXDJX:DOW)
Follow Dow Chemical (Old Filings) (INDEXDJX:DOW)
#3. Amgen Inc. (NASDAQ:AMGN)
– Shares Owned by Third Point LLC (as of December 31): 9.04 Million
– Value of Third Point’s Holding (as of December 31): $1.47 Billion
– Q1 Return: -7.0%
Mr. Loeb’s Third Point reduced its exposure to Amgen Inc. (NASDAQ:AMGN) by 807,100 shares during the fourth quarter of 2015, remaining with 9.04 million shares valued at $1.47 billion. The position constituted 14.89% of the fund’s equity portfolio at the end of the quarter. Amgen is a global biotechnology company that markets recombinant protein therapeutics for supportive cancer care, inflammation, nephrology, and bone health. The company’s total revenues grew 8% year-on-year to $21.66 billion, while its adjusted operating income increased 19% to $10.05 billion. Meanwhile, earnings per share grew at an annual rate of 19% to $10.38. Moreover, Amgen’s management anticipates 2016 total revenues in the range of $22.0-to-$22.5 billion and adjusted EPS in the range of $10.60-to-$11.00. The shares of the biopharmaceutical giant are currently changing hands at around 13.1-times expected earnings, slightly above the forward P/E ratio of 12.1 for the biotechnology industry. Amgen also distributes an annualized dividend of $4.00 per share, which equates to a current dividend yield of 2.52%. The number of “hedgies” from our comprehensive database invested in the biotechnology company decreased to 68 from 73 during the final quarter of 2015. Samuel Isaly’s OrbiMed Advisors had 2.92 million shares of Amgen Inc. (NASDAQ:AMGN) in its equity portfolio at the end of 2015.
