Duquesne Family Office Goes On a Buying Spree

Duquesne Capital has reported another large bet on an energy company: Southern Co (NYSE:SO), one of the largest utility companies in the United States. The fund’s stake in the company amounts to 1.02 million shares reportedly worth $52.6 million at the end of March. John W. Rogers‘ Ariel Investments has reduced its investment in Southern Co (NYSE:SO) by 3% to some 1.61 million shares valued at $83.5 million. On May 5, the company announced the pricing on its public offering of 18.3 million shares and said it hoped to raise approximately $900 million. Southern Co said it plans to use the proceeds to pay off some of its short term debt and to partially finance its acquisition of AGL Resources Inc. (NYSE:GAS). The two companies agreed to merge in August 2015, with AGL shareholders set to receive $66 per share. Southern Co (NYSE:SO) has recently completed the takeover of PowerSecure International in a deal valued at $425 million. “Today we are thrilled to draw on PowerSecure’s nationally recognized expertise to deliver even greater customer value by developing innovative technologies on the other side of the meter,” said Thomas Fanning, President and CEO of  Southern Co about the acquisition.

Tobacco Still A Good Investment

Is it s good time to buy Philip Morris International Inc. (NYSE:PM) shares? Druckenmiller and his team seem to think so, as they amassed 554,800 shares by the end of the quarter, valued at more than $54.4 million. Natixis Global Asset Management-run, Harris Associates also reported a fresh investment in the tobacco company, having acquired approximately 3.76 million shares worth $369 million at the end of the quarter. Philip Morris International Inc. (NYSE:PM) has recently took a hit in Europe, as the EU’s highest court upheld the union’s strict anti-smoking rules and dismissed the company’s challenge. The 2014 Tobacco Products Directive instated a ban on certain flavors, required larger warning labels and set some limits on electronic cigarettes. Philip Morris International Inc. (NYSE:PM) stock has been a solid performer so far this year and was undeterred by the weak first quarter results. The company posted earnings of $0.98 per shares on the back of $16.08 billion in revenues, below market expectations of $16.28 billion in revenues and earnings of $1.11 per share. The stock ended yesterday’s trading session at $101.71 per share, up by roughly 17% for the year.

More Fizzy Drinks!

The largest new bet reported by Duquesne Capital in its latest 13F filing is The Coca-Cola Co (NYSE:KO). Worth some $64.4 million, the fund’s stake in the beverage corporation amounts to approximately 1.39 million shares. Coca-Cola’s first quarter results were not impressive either, as the beverage giant said it earned $0.34 per share on $10.3 billion in sales, down by 4% year over year. The Coca-Cola Co (NYSE:KO) said its performance was affected by the stronger dollar and by the recent health trends that saw customers shift from fizzy drinks to tea and fruit juice. The stock is currently trading at a P/E multiple of 27, which is almost in line with the industry average of 24. The Coca-Cola Co (NYSE:KO) also pays an annual dividend of $1.34 per share, which represents a yield of 2.10% for the stock. Peter Rathjens, Bruce Clarke And John Campbell‘s fund, Arrowstreet Capital, has also reported a new position in this stock that amounts to 4.44 million shares valued at roughly $206 million.

Disclosure: none