Billionaire Paul Singer’s Recent Activist Targets and 5 Top Stock Picks

In this article, we discuss billionaire Paul Singer’s recent activist targets and top 5 stock picks. If you want to see more stocks in this selection, you can check out Billionaire Paul Singer’s Recent Activist Targets and Top Stock Picks.

5. Synlab AG (ETR:SYAB)

Long Term Returns since Singer’s Investment: 37%
S&P 500 Gains since Singer’s Investment: 5.1%

Headquartered in Munich, Germany, Synlab AG (ETR:SYAB) is a healthcare company that provides clinical laboratory and medical diagnostics services for insurance companies, hospitals, pharmacies and clinics. It also offers coronavirus tests and medical and veterinary diagnostics services.

Billionaire Paul Singer’s Elliott Investment Management has amassed a position in Synlab AG (ETR:SYAB) as the company remains an acquisition target for Cinven in a deal that values it at $2.4 billion. The activist’s investor is expected to push for a much higher valuation as it sees a substantially long-term value for Synlab AG (ETR:SYAB) shares.

Elliott Management has already made a €400 million profit following a yearlong investment in Rocket Internet S.E. after asking for a higher price from founders who wanted to take the company private.

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4. NRG Energy, Inc. (NYSE:NRG)

Long-Term Returns since Singer’s Investment: 38%
S&P 500 Gains since Singer’s Investment: 2.76%

NRG Energy, Inc. (NYSE: NRG), an integrated power company, provides electricity and related products and services to residential, commercial, and industrial customers who purchase them. NRG Energy, Inc. (NYSE:NRG) generates electricity using natural gas, coal oil, nuclear energy, and battery storage.

NRG Energy, Inc. (NYSE:NRG) is the latest company to be targeted by billionaire investor Singer as part of an aggressive activist campaign. Elliot management wrote a letter to the company early in the year calling to be given some board seats. The activist investor is also pushing for strategic improvements, including a Vivint Smart Home review.

Elliott Management insists that NRG Energy, Inc. (NYSE:NRG) needs a new set of independent directors with power and energy industry expertise. It has identified five candidates to help implement the preceding operational and strategic changes. NRG Energy, Inc. (NYSE:NRG) is up by about 48% for the year amid the activist campaign. Elliot Management held stakes worth $399 million as of Q3 2023, an increase from $103 million when it first invested in Q2 2023.

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3. Salesforce, Inc. (NYSE:CRM)

Long-Term Returns since Singer’s Investment: 74%
S&P 500 Gains since Singer’s Investment: 17.5%

Salesforce, Inc. (NYSE:CRM) is a technology company that provides customer relations management technology that connects companies and customers. Salesforce, Inc. (NYSE:CRM) offers solutions that allow companies to store data, monitor leads and gain insights through analytics and relationship intelligence. 

Salesforce, Inc. (NYSE:CRM) has been the subject of activist campaigns led by Starboard Value over concerns that it has failed to convert its market-leading position into juicy returns for shareholders. Early in the year, Elliott Management acquired stakes in Salesforce, Inc. (NYSE:CRM), joining Starboard in an activist campaign to restructure the company to reinvigorate its prospects. What followed was the company announcing a round of layoffs targeting 10% of the workforce as it sought to bolster its margins.

Since the activist’s campaigns commenced, Salesforce, Inc. (NYSE:CRM) stock has rallied by about 74%, outperforming the S&P 500, which is up by about 17%.

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2. Pinterest, Inc. (NYSE:PINS)

Long-Term Returns since Singer’s Investment: 70%
S&P 500 Gains since Singer’s Investment: 2.1%

Based in San Francisco, California, Pinterest, Inc. (NYSE: PINS) functions as a visual discovery engine, enabling users to explore ideas ranging from recipes to home and style inspiration, among other things. Pinterest, Inc. (NYSE:PINS) provides video products and idea pins while offering organizing and planning tools. 

Elliott management targeted Pinterest, Inc. (NYSE:PINS) last year as part of an activist campaign to reinvigorate its prospects. The hedge fund acquired $90 million worth of shares, which has increased to $756.84 million as of Q3 2023.

With the investment, the hedge fund pushed for management changes and succeeded in gaining a seat on the board, putting it in the driver’s seat in forging its future. Pinterest, Inc. (NYSE:PINS) fortunes have improved by the stock rallying by 50% year to date.

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1. Marathon Oil Corporation (NYSE:MRO)

Long-Term Returns since Singer’s Investment: 175%
S&P 500 Gains since Singer’s Investment: 56%

Marathon Oil Corporation (NYSE:MRO) is the second largest holding in Elliott Management’s portfolio, accounting for 12.9% of the portfolio. Marathon Oil Corporation (NYSE:MRO) is an integrated downstream energy company that refines crude oil and other feedstocks at its refineries. It also refines products and ethanol for resale and distributes refined products.

Marathon Oil Corporation (NYSE:MRO) is up by about 26% year to date, benefiting from an uptick in oil and gas prices amid strong demand on solid economic fundamentals. Marathon Oil Corporation (NYSE:MRO) acts as a solid income stream for Singer’s portfolio as it rewards with a 2.24% dividend yield. Elliott Management has held stakes in Marathon Oil Corporation (NYSE:MRO) since 2016 and held stakes worth $1.67 billion as of Q3 2023.

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