Billionaires Paulson, Cohen, Soros and Others Added These Major Stocks to Their Portfolios in Q1

Although many investors and analysts have voiced their discontent with the herd-like behavior and weak performance of the hedge fund industry of late, there are some hedge fund managers who have successfully beaten benchmarks in recent years. For instance, Steven A. Cohen’s family office, Point72 Asset Management, has successfully beaten the hedge fund industry in the past two years (Point72 made gross profit of $2.5 billion-to-$3.0 billion in 2014), but the so-called herd-like behavior has impacted his fund’s performance thus far in 2016. While there are numerous hedge fund vehicles out there in the market worthy of the attention of the investment community, the following article will lay out five new bets made by several extremely successful and widely-known hedge fund managers, including Mr. Cohen.

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Billionaire Daniel Och Buys Stake in Baxalta Inc. (NYSE:BXLT) After Merger Announcement

Daniel S. Och’s OZ Management LP acquired a new stake of 14.43 million shares of Baxalta Inc. (NYSE:BXLT) during the first quarter of 2016, which was valued at $582.80 million on March 31. The new position was the largest equity holding in OZ Management’s portfolio at the end of March, accounting for nearly 3% of the value of the entire portfolio. In January, the U.S drugmaker announced that it had agreed to be bought by Dublin-based Shire PLC (ADR) (NASDAQ:SHPG) in a deal that could create a global leader in the treatment of rare diseases. The terms of the agreement stipulate that Baxalta shareholders will receive $18.00 in cash and 0.1482 American Depository Shares (ADSs) of Shire for each share of Baxalta. Just recently, Shire said that the $32 billion merger remained on track despite new regulations aimed at curbing inversions, which put the kibosh on another multi-billion-dollar merger in the healthcare space, that being the proposed $160 billion merger between Pfizer Inc. (NYSE:PFE) and Allergan PLC (NYSE:AGN). Eric Mindich’s Eton Park Capital acquired a new stake of 11.93 million shares of Baxalta Inc. (NYSE:BXLT) during the March quarter.

Activist John Paulson Initiates Position in Activision Blizzard Inc. (NASDAQ:ATVI)

John Paulson’s Paulson & Co. reported a new stake of 3.14 million shares of Activision Blizzard Inc. (NASDAQ:ATVI) through the latest round of 13F filings, which was worth $106.26 million on March 31. Soon after the developer and publisher of interactive entertainment released a strong first quarter earnings report, analysts at Pacific Crest Securities upped their price target on Activision Blizzard’s stock to $40 from $36 and reiterated their ‘Overweight’ rating on it. The company’s GAAP net revenue for the first quarter was $1.46 billion, up from $1.28 billion reported a year earlier. Pacific’s analysts believe the video game software company will continue to perform well in the current quarter, thanks to the highly-anticipated release of team-based first-person shooter Overwatch by the end of May, after the game’s brief open beta in early May pulled in nearly ten million players. Shares of Activision Blizzard have gained 32% in the past three months, but are still down by 1% year-to-date. Philippe Laffont’s Coatue Management owns 14.48 million shares of Activision Blizzard Inc. (NASDAQ:ATVI) as of the end of March.

On the next page of this article we’ll lay out three more noteworthy hedge fund moves disclosed through the latest round of 13F filings.

Barrick Gold Corporation (USA) (NYSE:ABX) Tops George Soros’ Equity Portfolio

Gorge Soros’ Soros Fund Management LLC added a 19.42 million-share position in Barrick Gold Corporation (USA) (NYSE:ABX) to its portfolio during the January-to-March period, which was the largest equity holding in the fund’s entire portfolio. The new position was valued at $263.71 million at the end of March and accounted for 5.8% of Soros Fund Management’s $4.53 billion portfolio. The shares of most gold miners have appreciated significantly since the start of 2016, gaining even more than the double-digit gains in the precious metal. Barrick, which entered the gold mining business in 1983, has seen its market value gain an impressive 162% since the beginning of the year. The Canadian-listed company strengthened its balance sheet significantly in 2015, as the company reduced its debt load by 23.7% to $10.0 billion. Barrick Gold plans to reduce its total debt by an additional $2 billion in 2016 by using cash on hand, free cash flow from operations, and/or proceeds from divesting non-core assets. Jim Simons’ Renaissance Technologies has 26.50 million shares of Barrick Gold Corporation (USA) (NYSE:ABX) in its portfolio as of March 31.

Billionaire Steve Cohen Buys Yahoo! Inc. (NASDAQ:YHOO) Amid Strategic Review Process

Steve Cohen’s Point72 Asset Management purchased a new position of 2.66 million shares of Yahoo! Inc. (NASDAQ:YHOO) during the first three months of 2016, which was valued at $98.01 million at the end of the first quarter. Yahoo, once the largest consumer e-mail service in the world, has been struggling to gain market share in the digital advertising space due to strong competition from other tech giants. In early February, the company announced plans to simplify its business operations, which involved a workforce reduction of roughly 15% and the closure of six offices in several cities across the globe. Similarly, Yahoo’s Board also formed a strategic review committee to consider strategic alternatives, which seems to be focused on selling the company’s Internet business. Reportedly, billionaire Warren Buffett is backing a consortium that includes Dan Gilbert, the founder of Quicken Loans, which is seeking to acquire Yahoo’s online portfolio. The consortium is said to have entered the second round of bidding for Yahoo’s Internet business. Yahoo shares are 12% in the green year-to-date. Kenneth Mario Garschina’s Mason Capital Management held a 13.10 million-share position in Yahoo! Inc. (NASDAQ:YHOO) at the end of March.

Tiger Cub Stephen Mandel Acquires Stake in Paypal Holdings Inc. (NASDAQ:PYPL)

In its 13F filing for the March quarter, Stephen Mandel’s Lone Pine Capital disclosed a new stake of 10.43 million shares of Paypal Holdings Inc. (NASDAQ:PYPL). The new position was worth $402.60 million on March 31 and made up 2.0% of the fund’s portfolio. The online payments company recently announced that it will no longer provide purchase protection coverage for backers of crowdfunded projects, which may represent a big blow for the fast-growing industry. The move will definitely increase investors’ risks related to failed crowdfunding projects, but it will significantly reduce PayPal’s exposure to those same risks. PayPal shares have gained nearly 8% since the start of the year and are currently trading at a forward P/E multiple of 22.1, compared to the forward P/E ratio of 18.2 for the Nasdaq 100 Index. Carl Icahn’s Icahn Capital LP reported ownership of 37.83 million shares of Paypal Holdings Inc. (NASDAQ:PYPL) through its latest 13F filing.

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