Billionaire Lee Ainslie’s Best Ideas for 2016

ARRIS International plc (NASDAQ:ARRS)

– Shares Owned by Maverick Capital (as of December 31): 11.64 million

– Value of Holding (as of December 31): $355.93 million

After initiating its position in ARRIS International plc (NASDAQ:ARRS) during the third quarter, Maverick Capital increased its stake by another 47% during the fourth quarter. ARRIS Group, Inc. became parent company ARRIS International after the former completed its $2.1 billion acquisition of Pace PLC on January 4. The entertainment and communication technology company has lost 20% of its market capitalization since the transaction was completed. On February 17, ARRIS International plc (NASDAQ:ARRS) reported its fiscal year 2016 fourth quarter results, declaring EPS of $0.62 on revenue of $1.10 billion, topping analysts’ estimate of EPS of $0.47, but falling short of revenue estimates of $1.13 billion. Though the revenue for the quarter came at the low end of the company’s original guidance, its margins and non-GAAP earnings came above its guidance due to R&D tax credits and year-end software license sales.

Pfizer Inc. (NYSE:PFE)

– Shares Owned by Maverick Capital (as of December 31): 11.3 million

– Value of Holding (as of December 31): $364.73 million

As with ARRIS International, Maverick Capital also initiated a stake in Pfizer Inc. (NYSE:PFE) during the third quarter and raised it significantly during the fourth quarter, by 62%. Shares of the pharma giant are down considerably since it announced its plan to acquire Allergan plc Ordinary Shares (NYSE:AGN) for $160 billion last November, including having declined by 8.21% so far this year. On February 8, a day after it reported its fourth quarter results, Pfizer Inc. (NYSE:PFE) announced its plans to reorganize its business after the Allergan merger and also revealed the names and designations of the executives who will be leading the merged entity. On February 17, the company revealed that it has settled a seven-year-old lawsuit against the pricing practices of its Wyeth unit, whose liabilities it inherited following its acquisition of Wyeth in 2009, for $784 million. Cliff Asness‘ AQR Capital Management increased its stake in Pfizer Inc. by 3% to almost 17.45 million shares during the fourth quarter.

Sabre Corp (NASDAQ:SABR)

– Shares Owned by Maverick Capital (as of December 31): 13.06 million

– Value of Holding (as of December 31): $365.2 million

Maverick Capital increased its stake in Sabre Corp (NASDAQ:SABR) by 22% during the fourth quarter, helping it to climb two spots quarter-over-quarter and become the fund’s third-largest equity holding at the end of December. Shares of Sabre Corp (NASDAQ:SABR) saw significant value erosion during the first few weeks of 2016, but have recouped most of those losses after the company reported its fourth quarter results on February 9 and now trade down by only 2.3% year-to-date. It declared EPS of $0.27 on revenue of $758.8 million for the quarter, topping the EPS of $0.22 on revenue of $646.10 million it reported for the same quarter of the previous year. Following the earnings release, analysts at Oppenheimer reiterated their ‘Outperform’ rating on the stock on February 10, but lowered their price target on it to $32 from $34. Clint Carlson‘s Carlson Capital also increased its stake in the company by 22% during the fourth quarter, to 1.14 million shares.

Disclosure: None