Louis Navellier’s Navellier & Associates recently filed its Schedule 13F for the second quarter of 2014. In it, the fund disclosed its long equity positions as of June 30, 2014. It declared more than $2.2 billion in equity holdings, with a focus on technology (25%) and services (20%) stocks. Let’s take a look at its five biggest new stock positions in order to find out if they deserve further research, and consideration as investments.
Navellier’s largest new bet was placed on Diamondback Energy Inc (NASDAQ:FANG), a $4.35 billion market cap independent oil and natural gas company of which the fund now owns 565,282 shares. This stake is worth more than $50 million, accounts for roughly 2.3% of the fund’s total equity portfolio’s value, and makes it one of the top five hedge fund shareholders at Diamondback Energy Inc (NASDAQ:FANG) –amongst those we keep track of.
On the opposite, the largest hedge fund shareholder, Charles Davidson’s Wexford Capital recently declared that it had disposed of 1 million shares of the company’s Common Stock. Following the reported transaction, Wexford Capital owns 8.63 million shares of Diamondback Energy Inc (NASDAQ:FANG), worth roughly $760 million at the current stock price.
Insiders have also been selling the stock. Starting in late February, nine insiders unloaded the company’s stock; they sold more than $260 million in stock, or 3.2 million shares. However, I would interpret these moves simply as smart investors seeking to capitalize from a 62% increase in the stock price, year-to-date.
Amkor Technology, Inc. (NASDAQ:AMKR) came in second. This $2.3 billion market cap provider of outsourced semiconductor assembly and test services saw Navellier acquire 4.32 million shares over Q2. The fund now owns more than $48 million in Amkor Technology, Inc. (NASDAQ:AMKR)’s stock, which makes it its largest hedge fund investor.
Other major investors also seem to feel bullish about Amkor Technology, Inc. (NASDAQ:AMKR). Peter Rathjens, Bruce Clarke And John Campbell’s Arrowstreet Capital last declared having more than doubled its exposure to the company, holding 1.82 million shares by the end of Q1. Jim Simons also upped his bet on the tech company by 30% over Q1, and currently owns 1.16 million shares.
Another newcomer at Navellier’s equity portfolio is United Rentals Inc. (NYSE:URI), a $10.5 billion market cap equipment rental company that operates in the U.S., Canada and Mexico. Over the second quarter of 2014, Navellier purchased 457,817 shares of United Rentals Inc. (NYSE:URI), worth almost $48 million. This position accounts for approximately 2% of the fund’s total equity portfolio.
On top of Navellier, like Paul Reeder And Edward Shapiro’s Par Capital Management are also betting on United Rentals Inc. (NYSE:URI). This fund last declared ownership of 934,813 shares of the company, after a slight increase in its position in the stock.
EQT Corporation (NYSE:EQT) is a $15.6 billion market cap oil and gas exploration and production company in which Navellier started a new position, with 399,423 shares, over Q2. However, the fund holds $42 million in EQT Corporation (NYSE:EQT)’s stock, a small bet compared to Jeffrey Tannenbaum’s 3.08 million shares. Fir Tree, Tannenbaum’s fund, last declared having increased its stake by 7%, over Q1; this position accounts for 3.3% of its total equity portfolio.
George Soros also declared an increase in its exposure to EQT Corporation (NYSE:EQT) over the last reported quarter. After adding 3% to his holdings, Soros owns 2.57 million shares of the company.
In addition, the company has witnessed some insider activity since the beginning of the year. Two board directors, Bray A. Cary Jr. and Philip Behrman, increased their stakes in the stock over the past few months. They now hold 9,441 shares and 6,543 shares, respectively, with a combined value of more than $1.64 million.
Finally, we’ve got The Dow Chemical Company (NYSE:DOW), a manufacturer and supplier of –as you might figure- specialty chemical, advanced materials, agrosciences and plastics, with a market cap of $61.6 billion. Navellier declared ownership of 741,701 shares of the company, worth about $38 million, by the end of Q2. This new position accounts for 1.7% of the fund’s equity portfolio.
Several other major hedge funds also seem quite bullish about The Dow Chemical Company (NYSE:DOW). Daniel S. Och’s Oz Management last declared an 851% increase in its stake and now owns about 9.29 million shares. Another fund betting on The Dow Chemical Company (NYSE:DOW) is Rob Citrone’s Discovery Capital Management, which owns about 8 million shares, up 982% over Q1.
Disclosure: Javier Hasse holds no position in any stocks or funds mentioned
